When a business owns or leases real property, the ABC creates immediate questions about what happens to those assets. The assignee must evaluate each piece of real property to determine whether it has equity value, whether it is subject to a mortgage or deed of trust, and what the most efficient path to liquidation looks like.
Real Property Strategy
Mortgaged property with no equity is typically surrendered to the lender — the assignee cooperates with the lender’s foreclosure or accepts a deed in lieu. Property with equity is marketed for sale, with the assignee acting as seller. The proceeds, net of the mortgage payoff, flow to the general estate for distribution to unsecured creditors.
A quick sale at slightly below market often beats a longer sale at full market. Every month a property sits unsold costs the estate carrying expenses — taxes, insurance, maintenance. An assignee who prices aggressively and closes fast may produce better net creditor recoveries than one who holds out for a higher price.
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. Request your free evaluation here.
California ABC System — Assignment for Benefit of Creditors 
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