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Assignments for the Benefit of Creditors (ABCs): Sales of a Business by an Assignee

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Assignments for the Benefit of Creditors (ABCs): Sales of a Business by an Assignee

Asset page (state insolvency channel). Legal information, not legal advice. Last verified: 2026-10-16.

What it is

In an assignment for the benefit of creditors an insolvent business transfers all of its assets to an assignee, who liquidates them — often by selling the business as a going concern — and distributes the proceeds to creditors by priority. It is a state-law alternative to Chapter 7 or a liquidating Chapter 11. The assignor consents to the assignment itself, but once it is made the assignee sells without the owner’s further approval, and the sale is a liquidation for creditors; for that reason this wiki treats an ABC sale as a forced-sale channel on the boundary between creditor and court sales.

States fall into roughly three groups:

  • Court-supervised statutory ABCs — e.g., Florida (Fla. Stat. ch. 727), New York (N.Y. Debt. & Cred. Law art. 2) and, since 2026, Delaware (10 Del. C. ch. 73A, the Uniform Assignment for the Benefit of Creditors Act, with a mandatory Court of Chancery petition).
  • Largely non-judicial ABCs with statutory overlays — e.g., California, where the assignment is a private transfer and the Code of Civil Procedure supplies a definition, notice duties and preference recovery (Cal. Code Civ. Proc. §§ 493.010, 1800, 1802).
  • States not covered here (needs_verification for each).

Florida — Fla. Stat. ch. 727

  • Purpose. “[A] uniform procedure for the administration and orderly liquidation of insolvent estates, and to ensure full reporting to creditors and equal distribution of assets according to priorities.” — Fla. Stat. § 727.101 (http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0727/0727.html , retrieved 2026-10-16; all ch. 727 citations below from the same retrieval).
  • Commencement. The irrevocable written assignment must provide “for an equal distribution of the estate according to the priorities set forth in s. 727.114” (§ 727.104(1)(a)). Within 10 days after delivery the assignee files a petition in circuit court with the assignment and schedules and asks the court to fix a bond of not less than USD 25,000 or “double the liquidation value of the unencumbered and liquid assets of the estate …, whichever is higher” (§ 727.104(2)(b)); the proceeding is under the court’s “order and supervision” (§ 727.102).
  • Selling. The assignee must “[c]ollect and reduce to money the assets of the estate, whether by suit … or by public or private sale,” including selling the assignor’s claims and causes of action (§ 727.108(1)). It may run the business for up to 45 days, longer on notice (§ 727.108(4)); may reject unexpired non-residential real-property and personal-property leases (§ 727.108(5)); and may abandon assets with no equity to perfected lienholders (§ 727.108(11)).
  • Notice of sale. “The assignee shall give the assignor and all creditors at least 21 days’ notice by mail of a proposed sale of assets of the estate other than in the ordinary course of business”; objections are due within 21 days after service (§ 727.111(4)).
  • Court approval. On notice “to all creditors and consensual lienholders,” the court may “hear and determine a motion brought by the assignee for approval of a proposed sale … and enter an order granting such motion notwithstanding the lack of objection if the assignee reasonably believes that such order is necessary” (§ 727.109(7)). The court may also “[d]etermine the validity, priority, and extent of a lien” and avoid unperfected security interests using the assignee’s lien-creditor rights under Fla. Stat. § 679.3171 (§ 727.109(8)(b)) and avoid voidable transfers (§ 727.109(8)(c)).
  • Liens follow proceeds. Perfected lienholders “shall receive the proceeds from the disposition of their collateral, less the reasonable, necessary expenses of preserving or disposing of such collateral to the extent of any benefit to such creditors” (§ 727.114(1)(a)).
  • What chapter 727 does not say. The retrieved text contains no provision expressly authorizing a sale “free and clear” of perfected liens over the lienholder’s objection, no assumption-and-assignment override of anti-assignment clauses, and no successor-liability bar. Section679.3151 supplies the continuing-security default absent actual authorized disposition, release or binding avoidance/discharge. The actual order and affected rights matter; chapter727 is not universal objection-overriding lien cleansing. The full florida-moffatt-nichol-v-bea-international-2010 and florida-pro-finish-v-all-american-trailer-2016 opinions were retrieved 2026-10-17; their actual holdings do not establish universal perfected-lien discharge.

Delaware — Uniform Assignment for the Benefit of Creditors Act (10 Del. C. ch. 73A)

Delaware repealed its 19th-century voluntary-assignment subchapter (10 Del. C. §§ 7381 ff.) “by 85 Del. Laws, c. 291, § 2, effective June 10, 2026” (https://delcode.delaware.gov/title10/c073/sc06/index.html , retrieved 2026-10-16) and enacted chapter 73A, which “may be cited as the ‘Uniform Assignment for the Benefit of Creditors Act’” (10 Del. C. § 7301A, https://delcode.delaware.gov/title10/c073a/index.html , retrieved 2026-10-16; all ch. 73A citations below from the same retrieval). The full authenticated 2026 enactment was retrieved 2026-10-17: § 9, printed page 13, preserves former §§ 7381–7387 for assignments made before the act’s effective date. Do not apply the new buyer protections retroactively. The act records approval June 10, 2026.

  • Scope. Applies to an assignor that is an organization with its principal place of business in Delaware, an organization “whose internal affairs are governed by other law of this State” (i.e., Delaware entities wherever located), a Delaware-resident individual, and certain wholly owned or controlled affiliates; banks and insurers are excluded (§ 7303A).
  • Independent assignee. The assignee may not be a creditor, affiliate or insider, may not have a claim or “material financial interest in the outcome” other than its fees, and may not hold an equity interest other than a non-controlling stake in a public company (§ 7304A(a)).
  • Effect. “An assignee obtains the rights, title, and interests of the assignor in the assigned assets,” including after-acquired assets of an organization, but “takes each assigned asset subject to an existing interest in the asset held by another person,” except as the avoidance power allows (§ 7305A(a)–(c)). The assignment remains “subject to other law under which the assignment may be fraudulent or otherwise voidable” (§ 7305A(e)).
  • Assignee’s lien. For avoidance and priority purposes the assignee “has a lien on the assignment estate” with the status of a UCC “lien creditor” as to personal property and fixtures and a bona fide purchaser as to real property (§ 7310A(d)).
  • Powers. Unless the assignment agreement provides otherwise, the assignee may operate the business; incur debt; “[c]ollect on, or sell, lease, license, or otherwise dispose of, an asset of the assignment estate regardless of whether the asset is subject to a lien or other encumbrance”; redeem encumbered assets; abandon assets; and avoid transfers a creditor could have avoided (§ 7310A(b)).
  • Court. “Within 14 days of entry into an assignment agreement, the assignee shall file a petition with the Court of Chancery”; on the assignee’s request the court “may issue an order … including an order for disposition of an asset, auction or sale procedures in connection with a contemplated asset disposition, or the incurrence of an obligation or a debt” (§ 7321A(a)–(b)).
  • What the buyer takes (§ 7314A). “An assignee’s disposition of an asset: (1) Transfers to a transferee for value all of the assignee’s rights in the asset; (2) Discharges the assignee’s lien …; and (3) Discharges any subordinate security interest or other lien subordinate to the assignee’s lien.” “A transferee that acts in good faith takes free of the rights and interests described in subsection (a) …, even if the assignee fails to comply with this chapter or the requirements of a judicial proceeding.” If the transferee does not take free, it takes subject to the assignee’s rights and lien “and [a]ny other security interest or other lien.” “Unless otherwise provided in a record, any warranty arising by operation of other law is disclaimed.” The assignee may file a record in the relevant title or filing system stating that a subordinate lien was discharged (§ 7314A(a)–(e)).
  • Consequence. Because the assignee’s lien has lien-creditor status as of the assignment, a sale discharges liens subordinate to it (unperfected security interests and later liens), while perfected prior liens survive unless paid or released. A “protected secured creditor” — one whose perfected lien cannot be avoided and is not subordinate to the assignee’s lien — receives its collateral or proceeds first (§ 7315A(a), (c)).
  • Notice and claims. The assignee notifies known creditors, recent employees and contract counterparties within 30 days (§ 7307A(a)) and sets a claims bar date not less than 90 days after the effective date (§ 7309A(b)(6)).
  • Distribution order. Protected secured creditors; then administration costs (fees, post-assignment taxes, rent and lease payments); then federal-priority claims “including under 31 U.S.C. § 3713”; then wages earned within 180 days, up to the larger of the bankruptcy or state priority; then other priority unsecured claims; then general unsecured claims pro rata (§ 7315A(c)–(h)).
  • Consents. The assignor must “cooperate with the assignee to obtain consent from a person whose consent to assign the interest is necessary under other law” (§ 7308A(b)(8)) — i.e., the Act does not override anti-assignment clauses or licensing law.

California — non-judicial ABC with statutory overlays

The quotations below were first taken from an unofficial reproduction (california.public.law). california 12.5 now reads the official sections (leginfo.legislature.ca.gov and the Legislature’s bulk export) and is the reviewed statement of these rules.

  • Definition. A “general assignment for the benefit of creditors” is an assignment of “all the defendant’s assets that are transferable and not exempt from enforcement of a money judgment,” “for the benefit of all the defendant’s creditors,” that “does not itself create a preference” — Cal. Code Civ. Proc. § 493.010 (https://california.public.law/codes/code_of_civil_procedure_section_493.010 , retrieved 2026-10-16).
  • Attachment liens cut off. The making of a general assignment “terminates a lien of a temporary protective order or of attachment if the lien was created within 90 days prior,” but only if all corresponding out-of-state attachment liens created within that 90-day period have also terminated — § 493.030 (https://california.public.law/codes/code_of_civil_procedure_section_493.030 , retrieved 2026-10-16).
  • Notice and claims date. Within 30 days after accepting the assignment in writing, the assignee gives written notice to creditors, equityholders and parties in interest, setting a claims date “not less than 150 days and not greater than 180 days” after the first notice — § 1802(a)–(b) (https://california.public.law/codes/code_of_civil_procedure_section_1802 , retrieved 2026-10-16).
  • Preference recovery. The assignee may recover transfers made within 90 days before the assignment (one year for insiders with reasonable cause to believe the debtor insolvent), insolvency is presumed for the 90 days, and the action must be commenced within one year after the assignment — § 1800(b)(4), (f), (g) (https://california.public.law/codes/code_of_civil_procedure_section_1800 , retrieved 2026-10-16).
  • Bulk-sales law does not apply to “[a] general assignment for the benefit of creditors or to a subsequent transfer by the assignee” — Cal. Com. Code § 6103(c)(6) (https://california.public.law/codes/commercial_code_section_6103 , retrieved 2026-10-16). Sales-tax and unemployment-insurance successor rules are separate (see buying-a-business-at-a-forced-sale); for sales tax, CDTFA Regulation 1702(a) states that the purchase-price withholding duty does not arise for transfers such as an ABC (18 CCR § 1702, https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1702.html , as cited in california 12.5).
  • Liquor licences. The licence of an “assignor for the benefit of creditors may be transferred by or to … an assignee for the benefit of creditors of a licensee with the consent of the assignor” — Cal. Bus. & Prof. Code § 24071(a) (https://california.public.law/codes/business_and_professions_code_section_24071 , retrieved 2026-10-16).
  • Perfected liens. An ordinary ABC asset transfer does not itself discharge an Article 9 security interest: the continuation rule of Cal. Com. Code § 9315(a)(1) applies unless the secured party authorizes a disposition free of its interest. The common-law ABC has no bankruptcy-style blanket free-and-clear sale authority. See california 12.5.

Arizona — 2026 Uniform Assignment for Benefit of Creditors Act

The full enacted 2026 chapter 29, retrieved 2026-10-17, adds A.R.S. §§ 44-601–44-625. The official effective-date summary identifies September 12, 2026 as the general effective date. Section 44-625 applies the chapter to assignments made on or after that date; do not retroactively apply its buyer protections to older assignments. The act did not repeal the separate older §§ 44-1031, 44-1033–44-1036 provisions discussed in arizona.

Under § 44-613, disposition transfers the assignee’s rights and discharges the assignee’s lien and subordinate liens; good-faith transferee protection does not make senior interests disappear. Section 44-614 separately protects qualifying secured-creditor collateral/proceeds. Section 44-620 provides judicial proceedings and relief; this is not a claim that every sale requires advance court approval. Determine the assignment date, applicable chapter, actual senior liens and required consents before treating a sale as free of any particular interest. On successor tax, § 42-1110 requires a successor to withhold until a receipt or no-amount-due certificate and contains no express exception for ABC, execution or receiver buyers (a reading of the text, not a ruling that every forced-sale buyer owes all seller taxes); Article 6 was repealed by Laws 2004, ch. 27, § 8. For old-law assignments under §§ 44-1031–44-1036 (superior-court filing, bond, publication, receiver- equivalent supervision), the purchaser-lien effect and coexistence with the new act remain needs_verification. See arizona 12.5.

Massachusetts — common-law assignment and tax boundaries

Massachusetts treats an ABC as a common-law trust: a trustee’s good-faith acts converting the assigned property stand despite later insolvency proceedings (c. 203, § 40), and ABC sales are outside auctioneer licensing (c. 100, § 11). milbank-v-littlefield-1941, 310 Mass. 55, was read on 2026-10-17 as a historical common-law assignment/trust/accounting decision, but the 2026-10-18 Massachusetts review could not re-verify it (its hosts disallow automated access) and does not rely on its holding (needs_verification). See massachusetts 12.5.

The full G.L. c. 62C § 51 expressly excepts the listed receivers, voluntary-ABC assignees, bankruptcy trustees and judicial public officers from that corporate-lien transfer provision. That is not a blanket exemption from every tax-clearance or successor rule: § 44’s certificate has its own scope (90-day response or release; it excludes Employment Security Fund obligations), and § 44 states no forced-sale exception. in-re-pbbpc-2013 is a Bankruptcy Appellate Panel decision about a bankruptcy sale/successor-rate issue, not a Massachusetts ABC immunity ruling.

New York — Debtor and Creditor Law article 2

Article 2 places assignments under the county court of the county “within which the assignment is recorded” and the supreme court (N.Y. Debt. & Cred. Law § 2, https://www.nysenate.gov/legislation/laws/DCD/2 , retrieved 2026-10-16 via a web-fetch tool that paraphrased the page; quoted fragments only). The debtor must file, within twenty days of the assignment, an inventory or schedule of creditors and assets with the county clerk where the assignment is recorded, and if the debtor does not, the assignee must (§ 4, https://www.nysenate.gov/legislation/laws/DCD/4 , retrieved 2026-10-16 the same way). Per new-york 12.5, which reads the official sections: the assignment must be written, acknowledged and recorded (DCL § 3); the assignee must post a bond within 30 days “and before he shall have any power or authority to sell” (§ 6); the court has “the powers of a court of equity” (§ 20) and allows secured creditors only the deficiency over their collateral (§ 15); claims notice is at least 10 days (§ 5). No free-and-clear power is stated, so security interests continue (UCC 9-315(a)(1)) unless the court’s order binds their holders (https://legislation.nysenate.gov/pdf/laws/DCD6/ and sibling section URLs).

Connecticut — private assignment is not universal judicial discharge

universal-road-machinery-v-skinner-1927 supplies a genuine machinery- assignment opinion. Appointment or a general sale power is not automatic cancellation of a nonconsenting perfected lien: compare Brackett, cain-v-country-club-delicatessen-1964’s consensual equipment sale and current § 42a-9-315. Section 33-898 and UCRERA § 52-622 have distinct scopes; do not import UCRERA discharge to unrelated business personalty. The actual DRS involuntary-transfer successor exception also differs from voluntary anticipatory transfers. See connecticut.

Colorado — statutory trust subject to existing liens

Title 6, §§ 6-10-102/106/107/128 provides the recorded assignment trust subject to valid subsisting liens, six-day inventory/double-value-bond filing and court-supervised assignee administration. Current § 6-10-116 makes a non-ordinary-course sale valid only with court approval, and § 6-10-132 lets a secured creditor foreclose within the year only by suit after its claim is allowed, without impairing the lien. It is not a universal lien-clearing business-sale shortcut. Actual 2026 chapter 334 amendments were compared. The separate corporate receiver in § 7-114-303, Rule 66 and a particular sale order do not universally clear every lien. See colorado.

Pennsylvania — actual 1901 insolvency act

The complete 1901 Act 231 supplies a court-supervised assignment framework. Section 18’s public chattel/cash default allows its court-prescribed variations; § 19 distinguishes payoff and subject-to dispositions. Its realty-specific clean-title language is not universal personalty lien discharge. Rule 1533 is a separate receiver procedure, not a substitute for those assignment terms. See pennsylvania for current buyer-interest and case-treatment limits.

What a buyer from an ABC assignee gets

North Carolina — partial repeal is not a universal prohibition

S.L.2020-75 §2(a) repeals only Chapter23 Articles1–2, not the entire chapter. Surviving provisions and G.S.105-241(d)‘s recognition of assignments do not alone establish a complete current voluntary common-law ABC sale/supervision/title procedure. That question remains open in north-carolina. Receiver free-and-clear power under1-507.46 is a different statutory channel, limited by1-507.21’s scope; it cannot be imported as an assignee’s universal lien-discharge power.

Louisiana boundary — corporate liquidation is not a universal ABC sale

R.S. 12:1-1432 makes the appointment and order central to corporate receivership/liquidation powers. Section 1-1405 permits winding-up dispositions but expressly says dissolution itself does not transfer title. The former § 151 and § 152 were repealed effective January 1, 2015. The complete official index contains no assignment-for- benefit-of-creditors or cession statute, so there is no supervised ABC channel; and under R.S. 9:5031 no lien or privilege is cancelled or affected by a sale in a liquidation, receivership, insolvency or succession proceeding (fieri facias and executory sales excepted), so such sales are not free and clear; confirmation follows the appointing order (§ 1-1432(C)). Do not treat a special dealership-distribution statute as a general business-sale regime. See louisiana, 12.5, for licence-continuity and tax-withholding limits that require their own analysis.

IssueFlorida ch. 727Delaware ch. 73ACalifornia
Court involvementMandatory petition; court-supervised (§§ 727.102, 727.104(2))Mandatory Chancery petition within 14 days; sale orders optional on request (§ 7321A)None required
Notice of sale21 days by mail to assignor and all creditors (§ 727.111(4))Not a separate sale-notice rule in retrieved text; court may set proceduresNot retrieved
LiensPerfected lienholders paid from their collateral’s proceeds (§ 727.114(1)(a)); no express free-and-clear power retrievedDischarges liens subordinate to assignee’s lien-creditor lien; senior perfected liens survive (§§ 7310A(d), 7314A)Attachment liens within 90 days terminated, subject to the out-of-state condition (§ 493.030); Article 9 security interests continue unless the secured party authorizes the disposition (Com. Code § 9315(a)(1))
Good-faith buyer protectionNot retrievedTakes free of discharged interests even if assignee did not comply (§ 7314A(b))Not retrieved
Contracts, leases, licencesLease rejection only (§ 727.108(5)); no assignment overrideNo override; assignor cooperates to obtain consents (§ 7308A(b)(8))No override; liquor licence transfer by assignee with assignor’s consent (B&P § 24071)
WarrantiesNot retrievedDisclaimed unless a record provides otherwise (§ 7314A(d))Not retrieved
Successor liability barNone retrievedNoneNone; bulk-sales law inapplicable (Com. Code § 6103(c)(6))

▸ For Buyers / Operators — An ABC sale is faster and cheaper than a § 363 sale but does not deliver a court order stripping senior liens or barring successor claims, and it cannot force a landlord, licensor or regulator to accept the buyer. Lien payoffs or releases, landlord and licensor consents, and tax clearances are closing conditions to negotiate, not statutory outcomes. See buying-a-business-at-a-forced-sale.

▸ For Owners / Debtors — The assignor gives up all non-exempt assets and must cooperate with the assignee (10 Del. C. § 7308A; Fla. Stat. § 727.107). In Delaware any residue after all timely allowed claims goes first to allowed late-filed claims and then “as provided in the assignment agreement” (10 Del. C. § 7315A(i)). Creditors receive notice and a claims deadline (10 Del. C. §§ 7307A, 7309A(b)(6); Cal. Code Civ. Proc. § 1802).

Wisconsin — Article6 repeal is not successor-tax clearance

2009 Act110 §3 repealed Article6; the official act prints publication February18,2010. Do not substitute an unverified secondary effective-date assertion or infer that successor sales-tax liability disappeared. Under Tax 11.91(1)(d), (f) and (g), specified foreclosure, sheriff and bankruptcy transfers have express exceptions. A creditor operating the surrendered business is treated differently from one holding it solely for liquidation without operation. An ABC label alone establishes none of those conditions. See wisconsin.

South Carolina — the assignee-alone exception matters

Title27 chapter25 normally uses the assignee and creditor-appointed agents, with concurrence and disagreement rules. But §27-25-100 permits the assignee to dispose of assigned effects without creditor concurrence if the creditors neglect or refuse to appoint agents within ten days after being called together. Do not describe agents as an unconditional prerequisite to every sale. Assigned debtor interests, existing secured rights and the separate §12-54-124tax-clearance conditions remain distinct. See south-carolina.

Minnesota — incorporated powers and transaction-specific tax exclusions

Section577.18 incorporates general-receiver powers; §576.46 supplies conditional court-ordered free-and-clear authority, not automatic cleansing by every assignment. Federal liens, specified taxes, co-ownership, objections, notice and the actual order still matter. Section270C.57 separately excludes the described ABC/foreclosure/bankruptcy/receiver transactions from its transfer definition. The exclusion is not defeated merely because the buyer is not itself a receiver or secured party, and it does not erase every previously attached lien or independent purchase tax. See minnesota.

Nevada — repeal and tax duties are separate

Article6was repealed by 1991chapter223§183, with its effective provision in §185. Section104.1105is severability, not that historical repeal. Chapter612’s EmploymentSecurity notice applies to the specified seller/receiver/sheriff/ assignee; it is not a blanket forced-sale exemption or a promise that successor tax/licence duties disappear. Assignment title and any receiver sale power require their actual governing authority. See nevada.

Kansas — express creditor trust, not automatic continuing supervision

An assignment establishing an express creditor trust falls within 58a-102. 58a-201 provides no continuing judicial supervision unless ordered; interested persons may invoke jurisdiction. The trustee’s 58a-816 public/private, cash/credit sale powers remain subject to the instrument, fiduciary duties and retained property interests. That conditional answer is not a claim that every arrangement labeled ABC has identical effects or that a private assignment eliminates existing liens. See kansas.

Oregon — trust scope determines the supervision default

For an ABC establishing a qualifying express creditor trust, ORS130.005/.050 provides no continuing judicial supervision unless ordered, while allowing interested-person intervention and instructions.130.720/.725permit public/ private cash/credit sales without court authorization, subject to trust terms and fiduciary duties.130.005(2)expressly excludes court-ordered bankruptcy/ business-liquidation funds, business trusts and trusts solely securing an obligation, among others. Do not assume every arrangement labeled ABC is the same qualifying trust or ignore an actual receivership/court order. oregon retains separate secured-claim valuation, tax-notice and surviving-interest rules; the supervision default is not a private power to erase liens.

businesses-and-going-concerns, receivership-sales, bankruptcy-363-sales, ucc-article-9-sales-of-a-business, intellectual-property-and-licenses, buying-a-business-at-a-forced-sale, federal-tax-liens

needs_verification

  • Whether Delaware Court of Chancery rules under § 7321A(d) have been adopted; the actual § 9 transition text is now retrieved above.
  • Florida chapter727: apply the continuing-security default and the actual consent/release/avoidance/discharge order, not a universal free-and-clear label.
  • New York: whether a particular article 2 sale order binds nonconsenting secured holders (see new-york 12.5).
  • California ABC notice-of-sale and buyer-warranty rules (not addressed in california 12.5).
  • Other states with ABC statutes and Uniform ABC enactments beyond the bounded Delaware and Arizona sections above.
  • Federal priority under 31 U.S.C. § 3713 as applied in ABCs (statute not retrieved).

Iowa — assignee sale approval

§681.25 requires court approval of the assignee’s sale. Assignment and appointment do not themselves authorize a universal free-and-clear transfer; actual approval, notice, rights conveyed and lien-treatment terms matter. This differs from an unqualified private no-court sale power. See iowa for the complete current assignment/receiver distinction and distribution requirements.

Alabama — October 2026 assignments

Act 2026-581, SB15 applies to assignments made on or after October 1, 2026; earlier assignments retain their own law. Circuit-court instructions/approval are available under § 7-9A-921, not mandatory ongoing supervision for every disposition. § 7-9A-914 transfers the assignee’s rights for value and discharges its lien/security interest and subordinate interests, with the stated good-faith protection. It does not automatically discharge senior interests. Notice, claim, priority and actual sale requirements remain separate; see alabama.

Sources

▸ For Buyers / Operators — Treat lien releases, consents and tax clearances as closing conditions; the statute will not supply them.

▸ For Owners / Debtors — Claim deadlines and distribution priorities are statutory; see the Delaware and California sections above.

This page provides general legal information, not legal advice. State insolvency law is technical, changes, and varies by state; its application is fact-specific. Nothing here creates an attorney-client relationship. Verify every statute, rule and holding against the current primary source and consult a licensed attorney before acting. Last verified: 2026-10-16.

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