Assignment for benefit of creditors

{
  "id": "MLC-T-LAW-000592",
  "term": "Assignment for benefit of creditors",
  "field": "Law",
  "definition": "A voluntary transfer of a debtor's assets to a trustee, known as an assignee, for the purpose of liquidating those assets and distributing the proceeds proportionally among the debtor's creditors. This is an alternative to formal bankruptcy proceedings, often used by insolvent businesses. It aims to provide an orderly liquidation process.",
  "url": "https://mlchart.com/terminology/law/assignment-for-benefit-of-creditors/"
}