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LSDefine

Simple English definitions for legal terms

assignment for the benefit of creditors

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A quick definition of assignment for the benefit of creditors:

An assignment for the benefit of creditors is when a person who owes money to many people gives their property to someone else to sell and use the money to pay back the people they owe. If there is any money left over, it goes back to the person who owed the money. This is like a different way to handle money problems instead of going to court for bankruptcy. But, the person who owed the money still has to pay back what they owe because the people they owe did not agree to let them off the hook.

A more thorough explanation:

An assignment for the benefit of creditors is a legal process where a debtor's property is transferred to another person, who then sells the assets to pay off the debtor's debts. This process is an alternative to filing for bankruptcy and is governed by state law.

For example, let's say a small business owner is struggling to pay off their debts. They may choose to make an assignment for the benefit of creditors, which means they transfer ownership of their assets to a trustee. The trustee then sells the assets and uses the proceeds to pay off the business's debts. Any remaining funds are returned to the business owner.

Another example could be an individual who owes a large amount of money to various creditors. They may choose to make an assignment for the benefit of creditors, which means they transfer ownership of their assets to a trustee. The trustee then sells the assets and uses the proceeds to pay off the individual's debts. Any remaining funds are returned to the individual.

Overall, an assignment for the benefit of creditors is a way for debtors to pay off their debts without going through the formal bankruptcy process. However, it's important to note that the debtor is not discharged from their unpaid debts through this process.

Assignment Division | assignment of dower

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Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
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