States With Assignment for the Benefit of Creditors' Laws

Financially-troubled companies that want to liquidate may use an Assignment for the Benefit of Creditors (ABC) procedure that is available under some states' laws, instead of filing for Chapter 7 bankruptcy protection in a federal court. (See Video Gaming Company OnLive Lives Again Thanks to an ABC Contract for more information.) During an ABC, a company (the assignor) makes an assignment by transferring its assets to an assignee, which might be an attorney, accountant or corporate entity…