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Illinois Receiver Arthur van der Vant- How Assignment for the Benefit of Creditors is A Win/Win

Arthur van der Vant

Arthur van der Vant

Information Nation recently spoke with Arthur van der Vant, Illinois Receiver,about a process known as ABC – the Assignment of Benefit of Creditors. He says this is a great alternative to bankruptcy for those looking to keep things low-key but who must liquidate assets in order to pay creditors. In this exclusive interview, Arthur van der Vant opens up about his role as an ABC assignee.

Information Nation: Thank you, Arthur van der Vant, for speaking with us today. We are glad you are here.

Arthur van der Vant:No problem, I’m always happy to educate people on alternative proceedings.

Information Nation:Let’s get started. Why would a business not just file for bankruptcy?

Arthur van der Vant:Well, Chapter 11 bankruptcies may make sense but they are complicated and can be cost prohibitive. Chapter 7 bankruptcies do not allow for continuation of operation of the business after filing.

Information Nation:So business bankruptcy filing may be a lengthy and damaging process, at the end of which everybody loses–debtors and creditors alike, right?

Arthur van der Vant:Yes, that is right.

Information Nation:How does this process work?

Arthur van der Vant:Assignments for the Benefit of Creditors (ABC) under the Illinois Common Lawis a voluntary transfer of all, or substantially most, assets of a business to an Assignee in trust by a corporation, an LLC, or a partnership to be liquidated and proceeds to be applied to the payment of debt and to return any surplus to the debtor.

Information Nation:Is this similar to appointing a trustee in bankruptcy?

Arthur van der Vant:Yes, very much like that.

Information Nation:So, Arthur van der Vant,an ABC assignee is given the responsibility of administrating the debtor’s assets and distributing proceeds to creditors?

Arthur van der Vant:Yes, that’s right.

Information Nation:Bankruptcies are conducted in court. What about ABC?

Arthur van der Vant:It depends on the state law.In the State Illinois where I practice the assignee is chosen by the debtor and acts out-of-court based on the assignment agreement.

Information Nation:Does an ABC appear on a credit report?

Arthur van der Vant:No, it does not.

Information Nation:Arthur van der Vant, can you tell us any other benefits of this process?

Arthur van der Vant:ABC process is cost effective, takes less time, and usually produces greater return to creditors.

Information Nation:How much power does the assignee have?

Arthur van der Vant:Once the assignment is made and accepted, the assignee takes control and management of the Debtor’s assets and has all decision making over the affairs of the Debtor, including over the Board of Directors.

Information Nation:Are there any limitations, Arthur van der Vant?

Arthur van der Vant:The decision to close a business and to make the assignment for benefit of creditors requires approval of the Board of Directors. In the case of an LLC the members of the limited liability company must approve such a decision.  In addition to that, a majority of shareholders of a company must also approve the Board of Director’s decision.

Information Nation:That is all very interesting. Thank you, Arthur van der Vant, for speaking with us and look forward to more time with you in the future.

Arthur van der Vant: My pleasure.

The data contained in this publication is for information purpose only.  The accuracy of the data contained herein is deemed reliable, but is not guarantied.  The author and/or publisher do not engage in rendering legal, accounting, or any other professional advice, and suggests that the services of a professional in those fields should be sought.  Any liability, loss, or risk, personal, or otherwise incurred as a result of using any of the information herein stated is not the responsibility of the author and/or publisher. For more information about ABC and other services, visit http://www.IllinoisReceiver.com

10 comments

  1. I can say that Arthur van der Vant is a good legal expert and a receiver. Arthur van der Vant is a very nice person, and I gained a lot of information to him and get some points on legal matters. Thank you so much Arthur van der Vant!

    • Arthur van der Vant

      @Terry – Thank you, for your heartwarming feedback. “Illinois Receiver Arthur van der Vant- How Assignment for the Benefit of Creditors is A Win/Win” – Arthur van der Vant

  2. Looking forward to know and learn some more from you Arthur van der Vant . I really admire you of your legal expertise Arthur van der Vant. You truly did a good job Arthur van der Vant!

    • Arthur van der Vant

      @Jerry – Thank you for leaving your comment and good feedback to us. “Illinois Receiver Arthur van der Vant- How Assignment for the Benefit of Creditors is A Win/Win” – Arthur van der Vant

  3. Hi! Arthur van der Vant you truly doing a good job. And I am interested in the ABC process. LLC members are subject to the same alter ego piercing theories as corporate shareholders Arthur van der Vant. Thank you for spending a time on sharing such informative writings with us Arthur van der Vant.

    • Arthur van der Vant

      @Susan – Thank you for leaving a comment! “Illinois Receiver Arthur van der Vant- How Assignment for the Benefit of Creditors is A Win/Win” – Arthur van der Vant

  4. Hello! Arthur van der Vant, activity-based costing is a special costing model that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption of each. I am very amazed of you Arthur van der Vant . Thank you so much Arthur van der Vant.

    • Arthur van der Vant

      @Pinky – Thank you so much for leaving a feedback. “Illinois Receiver Arthur van der Vant- How Assignment for the Benefit of Creditors is A Win/Win” – Arthur van der Vant

  5. Thank you, Arthur van der Vant for giving us an information that we can apply in our business. You truly amaze me of your legal expertise Arthur van der Vant. Thank you and more power Arthur van der Vant.

    • Arthur van der Vant

      @Joel – Your welcome! and thank you for leaving a comment. I am glad that you gain such informative information. “Illinois Receiver Arthur van der Vant- How Assignment for the Benefit of Creditors is A Win/Win” – Arthur van der Vant

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