An Assignment for the Benefit of Creditors or “ABC” is a state court proceeding that is governed under Chapter 577 of Minnesota Statutes. The law provides for a voluntary surrender and sale of the assignor’s assets under the supervision of a state court judge. The law was enacted in 2010 and is acknowledged as one of the best ABC laws in the country.  It has many benefits for debtors who are seeking an alternative to bankruptcy, for instance, as a voluntary action, an ABC generally allows more control over the assets of the debtor than a bankruptcy filing.  On the other hand, being a state court proceeding, an ABC is not as powerful a remedy as a bankruptcy in some areas and it can be just as expensive as a bankruptcy filing.  If you have any questions about how an ABC works, please contact one of the members of the Sapientia Insolvency Team.