assignment for the benefit of creditors

assignment for the benefit of creditors. Assignment of a debtor’s property to another person in trust so as to consolidate and liquidate the debtor’s assets for payment to creditors, any surplus being returned to the debtor. • This procedure serves as a state-law substitute for federal bankruptcy proceedings. The debtor is not discharged from unpaid debts by this procedure since creditors do not agree to any discharge. [Cases: Debtor and Creditor

1. C.J.S. Assignments for Benefit of Creditors §§ 2, 4; Creditor and Debtor §§ 2–3.]

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词条贡献者

译者Lisa，毕业于美国顶尖的高级翻译学院，擅长翻译涉及体育及娱乐业领域的法律文件。