Business Bankruptcy | Assignments
Understanding Bankruptcy Assignments
An assignment for the benefit of creditors is an alternative to a Chapter 7 bankruptcy, and they have many similarities. Under an assignment, an assignee is used to liquidate a business’ assets and distribute the proceeds among a business’ creditors. Any remaining funds are returned to the business owner(s) and shareholders. An assignee operates much like a bankruptcy trustee without the restrictions imposed by federal bankruptcy law.
When To Use Bankruptcy Assignments
Liquidating through an assignment is not as common as liquidating using Chapter 7 bankruptcy, but there are circumstances for which when it may be indicated. For example, when a single creditor will receive all or most of a company’s assets, an assignment might be beneficial. At Springer Larsen Greene, LLC, we are skilled in business liquidation and identifying when to pursue an assignment and when to file for Chapter 7 bankruptcy protection. We will closely examine your company’s financials and work with you to choose the most appropriate means of liquidation.