 An assignment for the benefit of creditors is designed to save time and expense by concluding the affairs of a bankrupt company.The assignment for the benefit of creditors is a state form of bankruptcy action versus a federal form of bankruptcy action.The assignment for the benefit of creditor's process is similar in character to a Chapter 7 bankruptcy and parallels some of the same procedures, but is not an actual "bankruptcy" in the form the word is used in the United States.