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SB 79

Uniform Assignment for Benefit of Creditors Act

2026 Regular Session

Colorado SB 79 adopts the Uniform Assignment for Benefit of Creditors Act, enabling debtors to voluntarily assign assets to satisfy debts outside federal bankruptcy court.

Senate Committee on Business, Labor, & Technology Postpone Indefinitely
#business&economicdevelopment #probate #trusts #&fiduciaries
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Bill Summary · SB 79

Legislative bill overview

SB 79 would adopt the Uniform Assignment for Benefit of Creditors Act (UABCA) in Colorado, establishing standardized rules for when debtors voluntarily assign their assets to a creditor or trustee to satisfy debts without formal bankruptcy. This model law, developed by the Uniform Law Commission, provides a state-level alternative to federal bankruptcy proceedings for managing insolvency.

Why is this important

The UABCA creates a faster, less expensive option for small businesses and individuals to resolve debts outside the federal bankruptcy system. For creditors, it provides clearer legal protections and streamlined collection procedures; for debtors, it offers a privacy-conscious alternative that may preserve business relationships and avoid the stigma and lengthy process of bankruptcy court.

Potential points of contention

  • Creditor preference concerns: The uniform framework may inadvertently favor certain creditors over others, raising fairness questions about who gets paid first when assets are limited
  • Debtor protection gaps: Unlike bankruptcy, UABCA assignments lack the automatic stay and discharge protections that prevent creditor harassment and provide a fresh start
  • Business community split: Small business groups may support it as an efficient tool, while consumer advocates may worry it enables aggressive collection practices against vulnerable individuals

Compiled from official sources — confirm details with the bill’s official record.

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