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.][Blacks Law 8th]