How to Prepare Your Business Records for an ABC Assignment

The quality of the business records the assignee inherits determines how smoothly the ABC proceeds. Assignors who prepare thorough, organized records give the assignee a head start — which translates to faster administration and better creditor recoveries.

What to Prepare

Before the assignment, compile: a complete creditor list with contact information and amounts, all outstanding contracts, all bank account information, a current inventory list, all accounts receivable with aging, all equipment schedules and titles, all real property documentation, all pending litigation files, and the last three years of tax returns and financial statements.

Good records reduce administration costs and speed distribution. An assignee who spends the first month reconstructing basic financial records is billing hours that reduce what creditors receive. An assignee who receives organized, complete records can move immediately to asset valuation and creditor outreach. The cost of preparation is small compared to the savings in administration time.

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.