The assignee’s fees are an administrative expense of the estate — paid before unsecured creditors receive anything. Understanding how fees are structured helps both assignors and creditors evaluate the process.
Typical Fee Structures
Assignees typically charge either an hourly rate (similar to attorney billing) or a percentage of assets administered. Professional advisors — attorneys, accountants, auctioneers — also charge fees that are administrative expenses. All of these come off the top before unsecured creditors see a dollar.
High administration costs reduce creditor recoveries. An estate with $500,000 in assets and $150,000 in administration costs delivers significantly less to unsecured creditors than one with $75,000 in costs. Business owners and creditors should both ask assignees for fee estimates before the assignment is made — and hold them accountable to those estimates.
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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