The Senate Judiciary Committee heard testimony on a bill adopting the Uniform Assignment for Benefit of Creditors Act, which would replace Delaware's existing ABC laws — dating to an 1875 statute — with a modern statutory framework. All testimony was supportive; no opposition was voiced, though the outcome of the legislation following the hearing was unclear.
“These changes modernize Delaware skeleton and and ancient insolvency laws which have remained largely unchanged for decades.”
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Sign in to subscribeIt. It's. Theory. Oppose eyes have it. We'll move to agenda item number two, which is Senate Bill 267. I want to thank my colleagues for being here as we look to amend Title 10 and Title 30 of Delaware Code relating to the Uniform Assignment for Benefit and Creditors Act. This bill adopts a Uniform Assignment for Benefit of Creditors act authored by the nonpartisan Uniform Law Commission as of March 2026. Similar legislation has been enacted in Nebraska and Utah and introduced in several other states. Because it follows a Uniform act, official legal comments from the Commission can be used by courts to help interpret the law in Delaware. What the Bill does the bill modernizes Delaware's legal framework by replacing outdated assignment for the benefit of of creditors ABC laws with a comprehensive statutory system that serves as a streamlined state law alternative to federal bankruptcy. Under this act, a financially distressed business known as the assigner voluntarily transfers all of its assets and control to a qualified third party called the assignee. These changes are necessary and needed because these changes modernize Delaware skeleton and and ancient insolvency laws which have remained largely unchanged for…
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