Bill
SB 949
Adopts a non-bankruptcy procedure where a debtor’s assets are assigned to a fiduciary for liquidation and creditor distribution under court-supervised rules.
SB 949 (Session 2026) – West Virginia
Title: Creating Uniform Assignment for Benefit of Creditors Act
Overview
SB 949 proposes adoption of the Uniform Assignment for the Benefit of Creditors Act (UABCA) in West Virginia. The act governs how a debtor’s assets are collected and liquidated for the benefit of creditors outside of bankruptcy court. It provides a streamlined, non-judicial process to assign assets to a fiduciary who facilitates liquidation and distribution to creditors under court-supervised procedures.
Purpose and intent
- Create a unified framework for private reorganization and liquidation of a debtor’s assets through a voluntary assignment for the benefit of creditors.
- Offer an alternative mechanism to bankruptcy proceedings for creditors to recover debts, with a focus on efficiency, minimizing court involvement, and faster disposition of assets.
- Establish standardized duties, procedures, and protections to ensure fair treatment of creditors and transparency in the process.
Key provisions and changes (highlights)
- Creation of a fiduciary mechanism: Establishes an assigned fiduciary (often called an assignee) who takes control of the debtor’s assets, inventories, and records after execution of an assignment for the benefit of creditors.
- Scope of assets: Defines which assets can be transferred to the assignee and how encumbrances, exemptions, and priority claims are treated.
- Creditor rights and priorities: Sets out the rights of secured and unsecured creditors, including notice requirements, claim submission, and distribution priorities, aiming for an orderly liquidation and proportional repayment.
- Proceedings and timeline: Outlines the process from execution of the assignment to asset collection, sale, and distribution, including key milestone timelines and potential court involvement for ratification or oversight.
- Oversight and reporting: Requires regular reporting by the assignee to creditors and potentially to the court, including asset inventories, status updates, and financial accounting.
- Protections for debtors: Includes safeguards to prevent abuse, ensure proper handling of property, and provide mechanisms for disputes or challenges to the assignment.
- Remedies and enforcement: Specifies remedies if the assignment or assignee acts improperly, including possible court intervention and liability for damages.
Who is affected
- Debtors: Individuals or businesses that execute an assignment for the benefit of creditors, transferring control of assets to an assignee.
- Creditors: Both secured and unsecured creditors benefit from a transparent, standardized process for filing claims, receiving notice, and obtaining distributions.
- Assignees: Persons or entities authorized to serve as fiduciaries in the UABCA process, responsible for asset management, liquidation, and distribution under the act’s rules.
- Courts and judicial oversight: Depending on the act’s provisions, a state court may be involved for oversight, confirmation, or dispute resolution.
Procedural and timeline aspects
- Filing and initiation: The act would specify how an assignment is initiated by the debtor and recognized by the assignee.
- Notification: Creditors must be notified with details about the assignment and procedures for filing claims.
- Asset liquidation: A defined sequence for converting assets to cash (or other forms) via sale or other disposition.
- Distribution: A timeline and methodology for distributing proceeds to creditors according to priority rules.
- Oversight: Potential court involvement for confirmation, challenges, or enforcement actions.
Co-sponsors
- Senator Mike Oliverio (Co-sponsor)
Notes
- The bill text appears to be incomplete or garbled in the provided content. The summary above reflects the typical structure and intent of the Uniform Assignment for the Benefit of Creditors Act as adopted by various jurisdictions. If enacted, the exact provisions, definitions, and procedural timelines may vary; consult the finalized bill text and fiscal notes for precise language, implementation costs, and effective dates.
Compiled from official sources — confirm details with the bill’s official record.
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