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An Assignment for the Benefit of Creditors (ABC) is a legal process through which a financially distressed business voluntarily transfers its assets to a third-party assignee for the purpose of liquidating those assets and distributing the proceeds to its creditors. ABC is an alternative to formal bankruptcy proceedings and is governed by state laws in the United States. In this article, we will explain why an ABC can potentially be a good alternative to bankruptcy, and other reasons why a distressed business should consider it.

Recent reports say that approximately 25% of hotels cannot pay their mortgages and are at risk of foreclosure. One example is the famed Roosevelt Hotel, which survived a world war and the Great Depression during its nearly 100-year history in Midtown Manhattan, but the COVID-19 pandemic has been too much for it to weather.

As the COVID-19 pandemic sweeps through the country, concerns about economic insecurity and safe housing have overtaken the national dialogue.

As an experienced partition referee, Griswold Law has seen all sides of partition cases. We often receive calls from attorneys initiating partition suits, looking to learn the proper procedure -- or even where to begin.