After the Assignment Deed is executed and recorded, the assignee must notify all known creditors of the assignment. This notice triggers the claims process and begins the wind-down in earnest. Proper notice is essential — creditors who aren’t notified can create problems later.
What the Notice Must Contain
California law requires the assignee to send written notice to all known creditors. The notice must: identify the assignor and assignee, state that an assignment has been made, provide a claims bar date, and explain the claims submission process. The bar date is typically 150 to 180 days from the notice, giving creditors time to submit their claims.
Creditors who miss the bar date may be barred from sharing in distributions. The bar date is not a technicality — it is the mechanism that allows the assignee to finalize the creditor list, pay distributions, and close the estate. Assignees who send proper notice and maintain documentation of delivery protect the assignment from later challenge by creditors who claim they weren’t notified.
The California ABC System gives business owners and creditors the exact tools, templates, and step-by-step guidance to navigate an Assignment for Benefit of Creditors — faster and cheaper than bankruptcy, without a federal court filing. Request your free evaluation here.
California ABC System — Assignment for Benefit of Creditors 
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