About This System

The California Assignment for Benefit of Creditors System is published by Justice Foundation — a consumer protection and legal education organization focused on helping individuals and business owners access the rights and remedies California law already gives them.

Why We Built This

Every year, thousands of California businesses close under the weight of debt — many going through expensive federal bankruptcy proceedings when a faster, cheaper state law process was available. The Assignment for Benefit of Creditors is one of California’s most powerful business wind-down tools. Most business owners never hear about it because most attorneys default to bankruptcy without analyzing the alternatives.

This kit changes that. It gives business owners, their advisors, and creditors the educational framework to understand when an ABC applies, how it works, and what rights each party has throughout the process.

The Claude AI Difference

Knowing that an ABC exists is one thing. Understanding how the priority waterfall applies to your specific creditor mix, whether your recent transfers are in the fraudulent transfer lookback window, and what your personal liability exposure is — that requires applying the law to your specific facts. The kit’s 12 pre-written Claude AI prompts do exactly that — giving you in-depth educational analysis tailored to your situation.

Disclaimer

Educational information and document templates only. Not legal advice. No attorney-client relationship. Justice Foundation is not a law firm. For contested creditor proceedings, fraudulent transfer litigation, personal liability disputes, or any matter requiring legal representation — consult a licensed California business or insolvency attorney.