An “Assignment for the Benefit of Creditors” (“ABC”) is a state-law alternative to bankruptcy, as already discussed in my prior blog posting on such proceedings. In Florida, business entities can opt to use this fairly inexpensive process under Chapter 727 of the Florida Statutes.

An assignment for the benefit of creditors is one of the vehicles utilized to liquidate a failed or no longer viable business under state law. This method of liquidating or transferring assets has long been popular in Florida. The assignment case is filed in a Florida Circuit Court where the assets of the business, assignor, are located.