Assignment for the Benefit of Creditors, Bankruptcy Deed, Deed of Assignment


 

DEED OF TRUST OR ASSIGNMENT FOR THE BENEFIT OF CREDITORS  (AKA BANKRUPTCY DEED)

KRS 379.020

Definition for “Assignment for benefit of creditors”  A general assignment for benefit of creditors is transfer of all or substantially all of debtor’s property to another person in trust to collect any money owing to debtor, to sell property, to distribute the proceeds to his creditors and to return the surplus, if any, to debtor.  Under Bankruptcy Act of 1898, such assignment was an “act of bankruptcy” if made within four (4) months of bankruptcy.  Black’s Law Dictionary

Definition for Voluntary assignment – An assignment made for the benefit of his creditors made by a debtor voluntarily, as distinguished from a compulsory assignment which takes place by operation of law in proceedings in bankruptcy.  Such constitutes as assignment of a debtor’s property in trust to pay his debts generally, in distinction from a transfer of property to a particular creditor in payment of his demand, or to a conveyance by way of collateral security or mortgage.  Black’s Law Dictionary

Deed of Assignment – Benefit of Creditor KRS 379.020

A Deed of Assignment is an instrument made by a debtor to any person in trust for the benefit of creditors.
 
The document must have the following information:

• Full names of grantor & grantee (KRS 382.135 (1)(a)) Effective 7-15-2016


• First party - the assignor (property owner) & their address KRS 379.020

• Second party – the assignee (trustee) and their mailing address KRS 379.020, KRS 382.430(2)


• If real property, the Book & Page Number of the document being assigned or if the property or interest was obtained by any other way than by recorded instrument of writing the deed of assignment must state clearly and accurately how and from whom the interest was obtained. KRS 382.290


• Consideration Certificate / Fair Market Value would be applicable if real property is involved (KRS 385.135)


• Legal description (Common Law) and OAG 81-100


• In-Care-Of Address for the property tax bill in the year transferred (deeds signed after July 31, 2008) (KRS 382.135 (c))


• Preparation Statement KRS 382.335


• The clerk shall request a return mail address (KRS 382.240)


The document must be signed by the assignor and assignee and the signatures must be acknowledged. (KRS 379.020 and KRS 382.130).


Schedule for Deed of Assignment - Benefit of Creditor  KRS 379.020(3)

Within five days the assignor must file a schedule that includes:
• The full value of the property assigned
• A list of creditors
• Post office address of creditors
• Amount owed the creditors
• Indicated is amount is secured by a lien or not    (KRS 379.020(3)
• Preparation Statement KRS 382.335
• The clerk shall request a return mail address (KRS 382.240
The assignor must sign the document and the signature must be given under oath with a “sworn and subscribed” statement by a notary.

Fee Schedule