Legal Definitions - bonis cedere

Bonis cedere is a Latin legal term that describes the act of a person formally surrendering or transferring their property or assets, typically to a creditor to satisfy a debt.

In essence, it means a debtor gives up their "goods" or possessions to someone they owe money to, often as an alternative to other legal proceedings like bankruptcy or foreclosure.

• Example 1: Business Asset Surrender

  A small manufacturing company is facing severe financial difficulties and can no longer pay its bank loans. Rather than forcing the bank to initiate a lengthy and expensive foreclosure process on the company's assets, the owner agrees to voluntarily transfer ownership of the factory's machinery and remaining inventory directly to the bank. This act of the company (the debtor) surrendering its property to the bank (the creditor) to settle its obligations is an instance of bonis cedere.

• Example 2: Real Estate in Lieu of Foreclosure

  A homeowner falls behind on their mortgage payments and realizes they cannot recover financially. To avoid the public record and credit impact of a formal foreclosure, they negotiate with their lender to voluntarily sign over the deed to their house directly to the bank. This transfer of property from the homeowner (debtor) to the bank (creditor) in satisfaction of the mortgage debt exemplifies bonis cedere.

• Example 3: Personal Property for a Judgment

  Following a court judgment where an individual was ordered to pay a substantial sum for damages, the individual admits they do not have sufficient cash. Instead, they offer to transfer ownership of a valuable antique collection they possess to the person they owe money to, and the creditor accepts this arrangement as full satisfaction of the judgment. Here, the debtor's voluntary surrender of their personal property to the creditor demonstrates bonis cedere.