What is an assignment for the benefit of creditors?
An assignment for the benefit of creditors is similar to a Chapter 7 bankruptcy but is governed under Florida state law.  Like a Chapter 7, an assignment for the benefit of creditors deals with the liquidation of a corporate entity.  It differs from a Chapter 7 liquidation in that a Chapter 7 bankruptcy trustee is not appointed and there is no full automatic stay as in bankruptcy.  The stay in an assignment for the benefit of creditors does not include the exercise of police or regulatory powers by a government entity or consensual lienholders such as mortgage liens.  Insolvency proceedings can be complicated.  Our firm can assist you in determining what strategy is best under your specific circumstances.