Question

Which proceeding uses an Assignee that is chosen by the debtor rather than a Trustee?

Chapter 7
O Out-of-Court Workout
O Assignment of Benett for Creditors (ABC)
O Chapter 11

Answer 1

Assignment of Bennett for Creditors (ABC)

Step-by-step explanation:

The debtor willingly assigns their assets to an assignee in an ABC procedure, who subsequently liquidates the assets and distributes the money to creditors. This is distinct from Chapter 7 bankruptcy, in which a Trustee is appointed by the court to supervise asset liquidation, or Chapter 11 bankruptcy, which entails reconstruction and debtor management.