Deed of assignment

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Updated: Aug 20, 2021

This term has particular reference to the law of bankruptcy and should not be confused with ordinary assignment, whether legal or equitable. It occurs where a debtor, as an alternative to being declared bankrupt, assigns all his property to a trustee for his creditors, with their agreement. To do so without their agreement or not in the proper form would constitute an act of bankruptcy, as would an assignment to one section of creditors only. The latter could be set aside by the trustee in an ensuing bankruptcy proper.

Reference: The Penguin Business Dictionary, 3rd edt.



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