The ability to utilize assignments in California can be traced to Civil Code Section 22.2, which incorporates English common law. Today, assignments in California are recognized under Section 1800 in the Code of Civil Procedure. Other statutory provisions in the California Civil Code and Code of Civil Procedure have been incorporated to assist the Assignee in administering its duties as a fiduciary for creditors. The general rule is that any debtor may make an assignment. A debtor is an individual, partnership, corporation or limited liability company that owes anything to anyone.
Any debtor owning property has the common law right to make an assignment.
An assignment is not generally used for individuals because individuals do not receive discharges as they would under Chapter 7 of the Bankruptcy Code. A partner may assign partnership property. The partner needs the expressed written consent and authorization of other partners to make an assignment, since an assignment is not within the contemplation of an ordinary partnership or the usual course of business and is therefore beyond the scope of agency arising from the partnership. A corporate resolution or resolution by the members of an LLC is required since the assignment is a disposition of all the debtor's assets. Any non-exempt property that the debtor can sell or convey may be assigned.