Los Angeles Business Asset Liquidation
In troubling financial situations, business owners may have several options for seeking relief. These options can include a Chapter 7 or Chapter 11 filing, a dissolution of the business or other alternatives. One such alternative to a bankruptcy filing may be to institute an Assignment for Benefit of Creditors (ABC). This process involves the voluntary transfer of assets to an Assignee (a fiduciary) for purposes of a liquidation or sale of the assets to repay some or all debts owed to creditors.
At Margulies Faith LLP, our Los Angeles attorneys offer advice to businesses throughout the Los Angeles, California area on the ABC process. As a lower cost alternative to bankruptcy, as well as providing various benefits that do not exist in bankruptcy, the Assignment for the Benefit of Creditors process can help you wind down your business and resolve your debt concerns outside of the constraints of a Bankruptcy Court.
Detailed Assignment for the Benefit of Creditors Advice
The Assignment for the Benefit of Creditors process involves the voluntary transfer of all or most of a debtor’s property to another person (a fiduciary) in trust, so that he or she will collect any money that is owed to the debtor, sell the debtor’s property, and apply the money received to the payment of debt, returning any surplus to the debtor.
A viable strategy in cases involving businesses interested in liquidating assets, the process can be a swift and more cost-effective avenue for relieving overwhelming debt and repaying creditors. Our attorneys have experience helping sole proprietors and business owners manage the Assignment for the Benefit of Creditors (ABC) process.
Prior to and during your proceedings, our lawyers will provide advice on the process and offer insight into whether the process will offer you the benefits you seek.
Contact our office online or call 818-705-2777 to discuss the Assignment for the Benefit of Creditors process and learn whether your business can benefit from this process.