The ABC exists at the intersection of several bodies of California law: commercial law, creditor rights, insolvency, employment, real property, and contract law. Understanding where the ABC fits in this ecosystem helps practitioners and business owners use it effectively.
The Statutory Framework
California’s ABC is governed primarily by California Civil Code §§ 1800-1802 and California Code of Civil Procedure §§ 493.010 et seq. The assignment creates a common law trust for the benefit of creditors. The assignee is a fiduciary. Priority rules are drawn from the same statutory framework that governs judgment creditors and bankruptcy proceedings.
The ABC is old law with modern applications. The ABC has been part of California’s commercial law since the 19th century, and courts have developed a substantial body of case law interpreting it. Practitioners who are familiar with the case law have significant advantages in navigating edge cases — disputed lien priorities, preference recovery actions, and assignee fee disputes.
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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