# Assignment for the Benefit of Creditors

**IRI:** https://folio.openlegalstandard.org/RBzBDWMpZCOFGTjRpx1wKEH

## Labels

## Definition

Assignment for the Benefit of Creditors (ABC) is a voluntary liquidation process where a debtor transfers all assets to an assignee, who sells the assets and distributes the proceeds to creditors. This non-judicial alternative to bankruptcy aims to maximize asset value and expedite creditor repayment. Some jurisdictions require court proceedings.

## Sub Class Of

- https://folio.openlegalstandard.org/R9HPXBgZpsNyy2AbQLv1rLG

**Deprecated:** False