assignment for the benefit of creditors

Definition of "assignment for the benefit of creditors"
  1. This occurs when a debtor hands over their belongings to an individual who then uses these belongings to settle the debtor's financial obligations
How to use "assignment for the benefit of creditors" in a sentence
  1. Because she couldn't pay her debts, she opted for an assignment for the benefit of creditors.
  2. The company was unable to meet its obligations and chose to pursue an assignment for the benefit of creditors.
  3. In an effort to pay back his debts, he chose an assignment for the benefit of creditors.
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