 ABC liquidation is different to Chapter 7 liquidation usually in that the creditors do not get any input into the procedure and a court is not needed either, so the process is faster in that respect.In the United States, a general assignment or an assignment for the benefit of creditors is simply a contract whereby the insolvent entity ("Assignor") transfers legal and equitable title, as well as custody and control of its property, to a third party ("Assignee") in trust, to apply the proceeds of sale to the assignor's creditors in accord with priorities established by law.An assignment for the benefit of creditors is a relatively well-established common law tool and is one alternative to a bankruptcy.