Accounts receivable — money owed to the business by customers — is often a significant asset in a commercial ABC. The assignee must collect as much of this receivable pool as possible, quickly, while managing the practical reality that customers of an insolvent business often try to avoid payment.
Collection Approach
The assignee sends demand letters to all open account debtors immediately after the assignment. Customers who owe money know the business is shutting down and sometimes accelerate payment to preserve goodwill. The assignee may also sell the receivable pool to a collection company at a discount — exchanging immediate certainty for a lower total recovery.
Disputed receivables require a different approach than undisputed ones. A customer who claims they owe nothing because of a breach or offset is not the same as a customer who simply hasn’t paid yet. The assignee must triage the pool: collect uncontested amounts quickly, evaluate disputed ones carefully, and decide which disputes are worth litigating.
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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