When you register for this webinar, you will receive a complimentary 5-part tool-kit that includes the following items:
= 13 Key Features of ABCs (List)
= 6 Step Process of ABCs
= The Benefits of ABC (List)
= Primary Governing Law of ABCs in Florida State Statutes
= 28 U.S. Code Statute 3103- Receivership
If a business is no longer solvent or viable, many debtors opt to file for Chapter 7 bankruptcy. However, the two (2) major problems with Chapter 7 bankruptcies are (1) many trustees appointed by the court are lawyers or accountants who oversee a large number of cases, operate independently, and do not maintain experienced staff; and, (2) the debtor cannot participate in the liquidation process once the trustee takes over.
In many states, an Assignment for the Benefit of Creditor (ABC) is a less expensive, quicker, and simpler alternative to traditional bankruptcy proceedings. This savings means larger payouts to both secured and unsecured creditors. Likewise, if an ABC is utilized to liquidate the company, the debtor can remain involved in the liquidation process, and s/he can also choose to whom (i.e., you, the creditor) to assign the property.
Alternatively, under federal law, a court may appoint a receiver for property in which the debtor has a substantial nonexempt interest if there is reasonable cause to believe that the property may be lost, concealed, materially damaged, or mismanaged. In other words, the purpose of a receivership is to preserve property pending foreclosure or another legal case. If your institution is appointed as the receiver, you will have the ability to collect the debtor's real and personal property and sell off the assets.
In this session, we will answer the following questions:
= What are the benefits of ABC or Receivership as compared to a Chapter 7 Bankruptcy?
= What similarities do ABCs, Receiverships, and federal bankruptcy share?
= Upon the execution of the ABC or the appointment of a Receiver, do the creditor and debtor share power over the legal estate in the assigned property?
= How long may an ABC operate the debtor's business for without seeking court approval?
= Should Assets be Sold Piece-By-Piece or All At Once?
If you do not fully understand your legal rights and responsibilities, then you and your institution may suffer both monetary losses and civil liability. Join us for this 90-minute session to discuss the pros and cons of bankruptcy alternatives and determine the circumstances in which your institution should pursue such pathways.
= Define and Discuss ABCs, Receiverships, & Other Common-Law Debtor Protections
= Exploration of State Law Procedures Under Which ABCs Operate, as Well as the Process of Establishing an ABC. (Includes a Brief Overview of Select States with ABC; i.e., California, Delaware, Florida, Georgia)
= Review Other Common Statutes Such as a Fraudulent Transfer Act & its Effect on Property (Note: You are empowered to maintain an action to pursue fraudulent transfers, preferential transfers, or other derivative claims.)
= Analyze the U.S. Federal Law Related to Receivership.
= Understand the Powers & Duties of the ABC, Including the Requirement to Provide Notice to Other Creditors; the Ability to Reject Leases of Both Real & Personal Property; the Power to Enforce Tort Claims; Collection of the Assets and Reducing Them to Money; Conducting the Business of the Debtor for Limited Periods; and, Submitting a Final Report.
= Discuss the Powers of Receiver and Potential to Take Possession of the Debtor's Personal and Real Property; and, the Requirement to Report
= Review the Duration of Receivership, Modification of Powers/Removal; and, Compensation of Receivers
= Examine the ABC's or Receiver's Power to Collect & Sell the Debtor's Assets:
= Review the Relationship Between the ABC and Unsecured Creditors (and Discuss Their Rights & Responsibilities).
Who Should Attend?
This informative session will benefit any employee in your Collections or Accounts Receivable Departments, and will be particularly valuable for:
- Loans Officers
- Loans Managers
- Lending Personnel
- Branch Managers
- Credit Union Managers
- Financial Officers
- Legal Counsel
- Accounts Managers
- Branch Administrators