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Debt Assignment: How They Work, Considerations and Benefits

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle.

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.

Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and proofreader with more than fourteen years of experience working with print and online publications.

Investopedia / Ryan Oakley

What Is Debt Assignment?

The term debt assignment refers to a transfer of debt , and all the associated rights and obligations, from a creditor to a third party. The assignment is a legal transfer to the other party, who then becomes the owner of the debt. In most cases, a debt assignment is issued to a debt collector who then assumes responsibility to collect the debt.

Key Takeaways

Debt assignment is a transfer of debt, and all the associated rights and obligations, from a creditor to a third party (often a debt collector).
The company assigning the debt may do so to improve its liquidity and/or to reduce its risk exposure.
The debtor must be notified when a debt is assigned so they know who to make payments to and where to send them.
Third-party debt collectors are subject to the Fair Debt Collection Practices Act (FDCPA), a federal law overseen by the Federal Trade Commission (FTC).

How Debt Assignments Work

When a creditor lends an individual or business money, it does so with the confidence that the capital it lends out—as well as the interest payments charged for the privilege—is repaid in a timely fashion. The lender , or the extender of credit , will wait to recoup all the money owed according to the conditions and timeframe laid out in the contract.

In certain circumstances, the lender may decide it no longer wants to be responsible for servicing the loan and opt to sell the debt to a third party instead. Should that happen, a Notice of Assignment (NOA) is sent out to the debtor , the recipient of the loan, informing them that somebody else is now responsible for collecting any outstanding amount. This is referred to as a debt assignment.

The debtor must be notified when a debt is assigned to a third party so that they know who to make payments to and where to send them. If the debtor sends payments to the old creditor after the debt has been assigned, it is likely that the payments will not be accepted. This could cause the debtor to unintentionally default.

When a debtor receives such a notice, it's also generally a good idea for them to verify that the new creditor has recorded the correct total balance and monthly payment for the debt owed. In some cases, the new owner of the debt might even want to propose changes to the original terms of the loan. Should this path be pursued, the creditor is obligated to immediately notify the debtor and give them adequate time to respond.

The debtor still maintains the same legal rights and protections held with the original creditor after a debt assignment.

Special Considerations

Third-party debt collectors are subject to the Fair Debt Collection Practices Act (FDCPA). The FDCPA, a federal law overseen by the Federal Trade Commission (FTC), restricts the means and methods by which third-party debt collectors can contact debtors, the time of day they can make contact, and the number of times they are allowed to call debtors.

If the FDCPA is violated, a debtor may be able to file suit against the debt collection company and the individual debt collector for damages and attorney fees within one year. The terms of the FDCPA are available for review on the FTC's website .

Benefits of Debt Assignment

There are several reasons why a creditor may decide to assign its debt to someone else. This option is often exercised to improve liquidity and/or to reduce risk exposure. A lender may be urgently in need of a quick injection of capital. Alternatively, it might have accumulated lots of high-risk loans and be wary that many of them could default . In cases like these, creditors may be willing to get rid of them swiftly for pennies on the dollar if it means improving their financial outlook and appeasing worried investors. At other times, the creditor may decide the debt is too old to waste its resources on collections, or selling or assigning it to a third party to pick up the collection activity. In these instances, a company would not assign their debt to a third party.

Criticism of Debt Assignment

The process of assigning debt has drawn a fair bit of criticism, especially over the past few decades. Debt buyers have been accused of engaging in all kinds of unethical practices to get paid, including issuing threats and regularly harassing debtors. In some cases, they have also been charged with chasing up debts that have already been settled.

Federal Trade Commission. " Fair Debt Collection Practices Act ." Accessed June 29, 2021.

Federal Trade Commission. " Debt Collection FAQs ." Accessed June 29, 2021.

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Assigning debts and other contractual claims - not as easy as first thought

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Harking back to law school, we had a thirst for new black letter law. Section 136 of the Law of the Property Act 1925 kindly obliged. This lays down the conditions which need to be satisfied for an effective legal assignment of a chose in action (such as a debt). We won’t bore you with the detail, but suffice to say that what’s important is that a legal assignment must be in writing and signed by the assignor, must be absolute (i.e. no conditions attached) and crucially that written notice of the assignment must be given to the debtor.

When assigning debts, it’s worth remembering that you can’t legally assign part of a debt – any attempt to do so will take effect as an equitable assignment. The main practical difference between a legal and an equitable assignment is that the assignor will need to be joined in any legal proceedings in relation to the assigned debt (e.g. an attempt to recover that part of the debt).

Recent cases which tell another story

Why bother telling you the above? Aside from our delight in remembering the joys of debating the merits of legal and equitable assignments (ehem), it’s worth revisiting our textbooks in the context of three recent cases. Although at first blush the statutory conditions for a legal assignment seem quite straightforward, attempts to assign contractual claims such as debts continue to throw up legal disputes:

In Sumitomo Mitsui Banking Corp Europe Ltd v Euler Hermes Europe SA (NV) [2019] EWHC 2250 (Comm), the High Court held that a performance bond issued under a construction contract was not effectively assigned despite the surety acknowledging a notice of assignment of the bond. Sadly, the notice of assignment failed to meet the requirements under the bond instrument that the assignee confirm its acceptance of a provision in the bond that required the employer to repay the surety in the event of an overpayment. This case highlights the importance of ensuring any purported assignment meets any conditions stipulated in the underlying documents.
In Promontoria (Henrico) Ltd v Melton [2019] EWHC 2243 (Ch) (26 June 2019) , the High Court held that an assignment of a facility agreement and legal charges was valid, even though the debt assigned had to be identified by considering external evidence. The deed of assignment in question listed the assets subject to assignment, but was illegible to the extent that the debtor’s name could not be deciphered. The court got comfortable that there had been an effective assignment, given the following factors: (i) the lender had notified the borrower of its intention to assign the loan to the assignee; (ii) following the assignment, the lender had made no demand for repayment; (iii) a manager of the assignee had given a statement that the loan had been assigned and the borrower had accepted in evidence that he was aware of the assignment. Fortunately for the assignee, a second notice of assignment - which was invalid because it contained an incorrect date of assignment - did not invalidate the earlier assignment, which was found to be effective. The court took a practical and commercial view of the circumstances, although we recommend ensuring that your assignment documents clearly reflect what the parties intend!
Finally, in Nicoll v Promontoria (Ram 2) Ltd [2019] EWHC 2410 (Ch), the High Court held that a notice of assignment of a debt given to a debtor was valid, even though the effective date of assignment stated in the notice could not be verified by the debtor. The case concerned a debt assigned by the Co-op Bank to Promontoria and a joint notice given by assignor and assignee to the debtor that the debt had been assigned “on and with effect from 29 July 2016”. A subsequent statutory demand served by Promontoria on the debtor for the outstanding sums was disputed on the basis that the notice of assignment was invalid because it contained an incorrect date of assignment. Whilst accepting that the documentation was incapable of verifying with certainty the date of assignment, the Court held that the joint notice clearly showed that both parties had agreed that an assignment had taken place and was valid. This decision suggests that mistakes as to the date of assignment in a notice of assignment may not necessarily be fatal, if it is otherwise clear that the debt has been assigned.

The conclusion from the above? Maybe it’s not quite as easy as first thought to get an assignment right. Make sure you follow all of the conditions for a legal assignment according to the underlying contract and ensure your assignment documentation is clear.

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Assignment Of Debt Agreement

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What is an assignment of debt agreement.

An assignment of debt agreement is a legal document between a debtor and creditor that outlines the repayment terms. An assignment of debt agreement can be used as an alternative to bankruptcy, but several requirements must be met for it to work.

In addition, if obligations are not met under a debt agreement, it might still be necessary to file for bankruptcy later on. Therefore, consulting with an attorney specializing in debt agreements is always recommended before entering into one of these contracts.

Assignment Of Debt Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-10 5 exhibit1024f10qsbmay04.htm EXHIBIT 10.24 , Viewed December 20, 2021, View Source on SEC .

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What Is an Assignment of Debt?

1 What Is an Assignment of Debt? The Legal Ins and Outs Explained
2 A Crash Course on Debt Assignments
3 Why Do Creditors Assign Debts?
4 The Debt Assignment Process 101
5 Your Rights When Debts Get Assigned
6 Potential Downsides of Debt Assignments
7 Tips for Dealing With Assigned Debts
8 Creditor Responsibilities With Assignments
9 The Secondary Debt Market Explained
10 Debt Bundling and Securitization Trends
11 Creditor Rights vs. Consumer Protections
12 When to Consult a Lawyer About Assignments
13 Avoiding Shady Debt Collectors
14 Pros and Cons of Debt Assignments

What Is an Assignment of Debt? The Legal Ins and Outs Explained

A crash course on debt assignments.

Ever heard of an “assignment of debt”? Yeah, it’s one of those legal terms that sounds pretty darn confusing. But don’t worry, I’m gonna break it down for you in a way that’s easy to understand. An assignment of debt is basically when a creditor (the person or company you owe money to) transfers or “assigns” your debt to someone else. So let’s say you owe cash to Bank A, but Bank A decides to sell your debt to Debt Collector B. Boom – that’s an assignment of debt right there. Now, you might be thinking “Wait, they can just sell my debt without asking me??” And the answer is…yup, they sure can! As long as they follow the rules, creditors have the right to assign debts to third parties. It’s all part of the fun world of debt collection. But don’t freak out just yet. There are some protections in place for debtors (that’s you!) when this happens. We’ll dive into those a bit later. For now, just know that debt assignments happen allll the time in the credit and lending world.

Why Do Creditors Assign Debts?

Good question! There are a few main reasons why creditors might want to offload your debt to someone else:

Cash Flow – Creditors like getting paid back ASAP. If you’re behind on payments, they may sell the debt to a collector who can hopefully get the money from you faster.
Reduce Risk – Holding onto unpaid debts is risky business. Assigning the debt transfers that risk to another party.
Operational Efficiency – Debt collection is a whole job in itself. Some creditors would rather outsource that headache.
Raise Capital – Selling debts raises cash that creditors can then reinvest in their businesses.

So in a nutshell, it basically comes down to improving cash flow, reducing risk exposure, focusing on their core business, and raising capital. For creditors, assigning debts just makes good financial sense in many cases.

The Debt Assignment Process 101

Okay, so when a creditor wants to assign your debt to someone else, there’s a little process they have to follow:

The Assignment Agreement – This is a contract between the original creditor and the debt buyer that lays out all the terms of the debt sale. It’ll specify things like the amount of debt being assigned, the purchase price, etc.
Notification – By law, the creditor has to notify you in writing that your debt has been assigned. This notice should include key details like the name of the new debt owner and instructions for making payments moving forward.
Debt Validation – If you request it, the new debt owner has to provide verification of the debt details, including the original creditor’s name and the amount you owe.
Account Transfer – Once all the paperwork is sorted, your account info and payment history gets transferred over to the new debt owner.

So in essence, an assignment agreement is signed, you get notified, the debt gets validated if needed, and then your account moves to the new creditor. Pretty straightforward process overall. Now, it’s important to note that the new debt owner (let’s call them the “assignee”) essentially steps into the shoes of the original creditor. They inherit all the rights and obligations related to collecting that debt from you. We’ll talk more about what that means for you as the debtor in a bit.

Your Rights When Debts Get Assigned

As a consumer, you’ve got some rights when your debt gets assigned to a new owner. Here are the key ones to know:

Fair Debt Collection Practices Act – This federal law prohibits debt collectors (including debt assignees) from using abusive, deceptive or unfair practices when trying to collect from you. So no threats, harassment or shenanigans allowed!
Debt Validation – As mentioned, you can request validation of the debt details from the new owner. They have to provide evidence that the debt is legit and you really owe it.
Statute of Limitations – There’s a time limit (set by state law) for how long a creditor can try to sue you over an unpaid debt. Assignments don’t reset or “re-age” this statute of limitations.
Payment History – Any payments you’ve already made should get credited to your account by the new debt owner. They can’t try to collect the full amount twice.
Interest Rate – The new creditor generally can’t jack up the interest rate above what you originally agreed to with the original lender.

So in a nutshell, debt buyers have to play by the rules just like original creditors. They can’t harass you, have to validate debts on request, can’t re-age old debts, and have to properly account for your payment history and interest rates. Of course, make sure you understand the specific debt collection laws in your state too. Those can provide extra protections beyond the federal stuff.

Potential Downsides of Debt Assignments

While debt assignments are totally legal, they’re not always a walk in the park for debtors. Here are some potential downsides to watch out for:

Aggressive Collectors – Let’s be real, some debt buyers play a little rougher than original creditors when it comes to collections. They may be more persistent in their efforts to get paid.
Debt Parking – Some shady debt buyers will intentionally “park” or withhold debts from the credit bureaus to try and catch you off guard later with a surprise collections effort.
Questionable Practices – There have been cases of debt buyers trying to collect inflated amounts, re-age old debts, or even collect debts twice. Gotta stay vigilant!
Restarting the Clock – In some states, simply getting assigned to a new debt owner can restart the statute of limitations clock, giving them more time to potentially sue you.
Debt Stacking – If multiple debts get bundled together and assigned, it can create one huge debt stack that’s harder to pay off.

The moral of the story? While there are laws in place, you gotta be a smart, informed consumer and not take any debt collector’s word as gospel – whether they’re the original creditor or not.

Tips for Dealing With Assigned Debts

So what should you do if one of your debts gets assigned to a new owner? Here are some tips:

Get it in Writing – Insist on receiving written validation of the debt details before acknowledging or paying anything.
Check the Records – Review your own payment records against what the new creditor is claiming you owe. Dispute any discrepancies.
Negotiate – Debt buyers often purchase debts for pennies on the dollar. Use this to your advantage and try negotiating a lump-sum settlement for less than face value.
Consult a Lawyer – If you suspect any illegal collection practices or have concerns about your rights, talk to a consumer lawyer who specializes in debt issues.
Understand Your State’s Laws – Again, debt collection laws can vary by state, so learn the specifics where you live.
Explore Your Options – Debt assignment may reset the clock for things like bankruptcy filings or debt management plans in some cases. Consider all potential solutions.

The key is to stay on top of the situation, assert your rights as a consumer, and explore all possible ways to resolve the debt in a fair manner. Don’t just roll over for an aggressive debt collector.

Creditor Responsibilities With Assignments

Of course, creditors who assign debts have some responsibilities too when it comes to protecting consumer rights:

Proper Documentation – They need to maintain complete and accurate records about the debt, payments made, and chain of assignment.
Vetting Debt Buyers – Creditors should do their due diligence in vetting any debt buyers they sell to and make sure they’re reputable operators.
Compliance Training – Smart creditors will ensure debt buyers are properly trained on all relevant debt collection laws and regulations.
Recall Rights – Many creditors will include contractual “recall” rights that allow them to pull back assigned debts if the debt buyer acts unethically.

At the end of the day, creditors don’t want their reputations getting dragged through the mud by some rogue debt collector’s bad practices. So it’s in their best interest to assign debts responsibly.

The Secondary Debt Market Explained

You know how I mentioned that creditors can raise capital by selling debts? Well, there’s actually a whole secondary market for trading consumer debts. It’s a multi-billion dollar industry! Here’s a quick overview of how it works: Original creditors will package up batches of unpaid debts and sell them off to different debt buyers. These buyers will then try to collect on those debts or re-sell them to other buyers. The debts get continuously traded and re-traded, often for much less than their face value. A debt buyer might pay just a few cents on the dollar for a delinquent debt portfolio. There are different types of debt buyers too:

Primary Debt Buyers – These are the ones purchasing debts directly from the original creditors.
Secondary Debt Buyers – They purchase debt portfolios from the primary buyers or other secondary buyers.
Debt Collection Agencies – Rather than re-selling, these are the companies actually trying to collect on the debts they purchase.

It’s kind of like a debt trading circle of life! Debts get passed around until they’re either collected on or ultimately deemed uncollectible. Now, you can probably guess that the more times a debt gets re-sold and re-traded, the higher the risk of documentation issues, inflated amounts being claimed, or other collection shenanigans. That’s why it’s so important for consumers to get debts validated and make sure their rights aren’t being violated, especially if their debt has been assigned multiple times.

Debt Bundling and Securitization Trends

Two other big trends to be aware of in the debt assignment world are debt bundling and securitization: Debt Bundling is when creditors package up lots of individual unpaid debts and sell them off as one big bundle or portfolio. This allows debt buyers to purchase debts in bulk rather than one-by-one. The bundling part makes record-keeping more complicated. There’s a higher risk of documentation getting jumbled or lost as the bundled debts get re-sold from buyer to buyer. Securitization takes bundling one step further. In this process, debt buyers will take bundles of debts and actually turn them into debt securities that can be traded on a secondary market. It works kind of like a mortgage-backed security, except instead of home loans, investors are buying securities made up of bundled consumer debts like credit cards, auto loans, etc. The securitization trend has grown in recent years as debt buyers look for new ways to raise capital and cash in on consumer debt portfolios. But critics argue it creates misaligned incentives, prioritizing debt volume over quality underwriting. For consumers, these trends make it even more critical to get documentation validated if your debt has been bundled or securitized. There’s a higher potential for errors and accountability issues the more times a debt has been re-packaged and re-sold.

Creditor Rights vs. Consumer Protections

At the end of the day, debt assignments exist because creditors have a legal right to sell unpaid debts to third parties. It’s just part of the whole credit and lending system. But at the same time, there are federal laws like the Fair Debt Collection Practices Act (FDCPA) that aim to protect consumers from abusive or deceptive debt collection tactics – whether it’s the original creditor or a debt buyer collecting. So it’s a bit of a balancing act between creditor rights to pursue legitimate debts and ensuring debt collectors (including assignees) are following the rules and not trampling on consumer protections. From a consumer perspective, the key things to watch out for with assigned debts are:

Shady Collectors – Make sure you’re dealing with a reputable agency, not a fly-by-night operation.
Improper Documentation – Get debts validated, check your records, and dispute any discrepancies.
Re-Aged Debts – Statute of limitation time limits should carry over, not get reset by assignments.
Inflated Amounts – You shouldn’t be charged extra fees or interest beyond what was originally agreed.
Harassment Tactics – No threats, abusive language, or unfair practices are permitted under the FDCPA.

Basically, you have to stay vigilant as a consumer and not just take a debt collector’s word at face value, even if they claim to have been assigned your debt fair and square.

When to Consult a Lawyer About Assignments

In some situations, it may be wise to consult with a consumer lawyer who specializes in debt issues and creditor harassment cases. A lawyer can review your specific situation and debts to:

Ensure all documentation is proper and no laws were violated in the assignment process
Analyze whether the new debt owner followed all notification and validation requirements
Determine if the new creditor is overstepping their rights in their collection efforts
Advise you of your rights and options for dealing with the assigned debt moving forward
Potentially negotiate a settlement or take legal action if any improprieties occurred

The reality is, the debt-buying industry has had its fair share of bad actors over the years. Some debt collectors play pretty fast and loose with the rules. So if you have any doubts or feel your rights are being violated, it never hurts to at least have a consultation with a qualified debt lawyer. They can review everything with an expert eye. Many consumer law firms in this space work on a contingency basis too. So you may not need any upfront money to have them evaluate your debt assignment situation.

Avoiding Shady Debt Collectors

Unfortunately, the debt-buying world does attract some shadier operators looking to make a quick buck through questionable practices. So it’s wise to watch out for any red flags that might signal you’re dealing with a disreputable debt collector, such as:

Lack of Documentation – If they can’t validate the debt with proper records, be very skeptical.
Harassment Tactics – Threats, profanity, repeated calls at improper hours…that’s all illegal.
Inflated Amounts – They shouldn’t be tacking on extra fees or charging higher interest rates.
Re-Aged Debts – Statute of limitation time limits need to carry over from the original creditor.
Questionable Addresses – Watch out for debt collectors operating out of PO boxes or virtual offices.
Lack of Licensing – Many states require debt collectors to have proper licensing and bonding.
Bad Reviews – Do some online research and see if others have reported issues with the agency.

The bottom line is, you shouldn’t feel intimidated or bullied into paying up if something seems fishy about the debt collector’s practices or documentation. Reputable agencies will operate by the book. If you encounter any red flags, request full debt validation, consult a lawyer if needed, and explore all your options for resolving the debt properly and fairly.

Pros and Cons of Debt Assignments

Like most financial and legal processes, debt assignments come with some potential pros and cons to consider: Pros of Debt Assignments

Allow creditors to raise capital and improve cash flow
Transfer risk of non-payment away from original creditors
Debt buyers may be more motivated to recover delinquent debts
Negotiating settlements with debt buyers is often easier
Assignments are legally permitted under current lending laws

Cons of Debt Assignments

Documentation issues and errors are more likely, especially with re-sold debts
Some debt buyers use unethical, overly aggressive collection tactics
Debts can get “re-aged” or have statutes of limitation reset in some cases
Bundling and securitization trends create more complexity and risks
Lack of incentives for debt buyers to verify underlying debt quality

At the end of the day, debt assignments are a legal and legitimate part of the lending ecosystem. But there are also plenty of historical examples of debt buyers overstepping their bounds and violating consumer protections. So it’s really a matter of ensuring there are proper safeguards, compliance, and accountability measures in place – both from creditors assigning debts responsibly and debt buyers collecting on those debts ethically.

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What is an Assignment of Debt?

By Vanessa Swain Senior Lawyer

Updated on February 22, 2023 Reading time: 5 minutes

This article meets our strict editorial principles. Our lawyers, experienced writers and legally trained editorial team put every effort into ensuring the information published on our website is accurate. We encourage you to seek independent legal advice. Learn more .

Perfecting Assignment

Enforcing an Assigned Debt

Recovery of an Assigned Debt

Other Considerations

Key Takeaways

Frequently asked questions.

I t is common for creditors, such as banks and other financiers, to assign their debt to a third party. Usually, an assig nment of debt is done in an effort to minimise the costs of recovery where a debtor has been delinquent for some time. This article looks at:

what it means to ‘assign a debt’;
the legal requirements to perfecting an assignment; and
common problems with enforcing an assigned debt.

Whether you’re a small business owner or the Chief Financial Officer of an ASX-listed company, one fact remains: your customers need to pay you.

This manual aims to help business owners, financial controllers and credit managers best manage and recover their debt.

An assignment of debt, in simple terms, is an agreement that transfers a debt owed to one entity, to another. A creditor does not need the consent of the debtor to assign a debt.

Once a debt is properly assigned, all rights and responsibilities of the original creditor (the assignor ) transfer to the new owner (the assignee ). Once an assignment of debt has been perfected, the assignee can collect the full amount of the debt owed . This includes interest recoverable under the original contract, as if they were the original creditor. A debtor is still responsible for paying the outstanding debt after an assignment. However, now, the debt or must pay the debt to the assignee rather than the original creditor.

Purchasing debt can be a lucrative business. Creditors will generally sell debt at a loss, for example, 20c for each dollar owed. Although, the amount paid will vary depending on factors such as the age of the debt and the likelihood of recovery. This can be a tax write off for the assignor, while the assignee can take steps to recover 100% of the debt owed.

In New South Wales, the requirements for a legally binding assignment of debt are set out in the Conveyancing Act :

the assignment must be in writing. You do this in the form of a deed (deed of assignment) and both the assignor and assignee sign it; and
the assignor must provide notice to the debtor. The requirement for notice must be express and must be in writing. The assignor must notify the debtor advising them of the debt’ s assign ment and to who it has been assigned. The assignee will send a separate notice to the debtor, putting them on notice that the debt is due and payable. They will also provide them with the necessary information to make payment.

The assignor must send the notices to the debtor’s last known address.

Debtor as a Joined Party

In some circumstances, a debtor will be joined as a party to the deed of assignment . There can be a great benefit in this approach . This is because the debtor can provide warranties that the debt is owed and has clear notice of the assignment. However, it is not always practical to do so for a few reasons:

a debtor may not be on speaking terms with the assignor;
a debtor may not be prepared to co-operate or provide appropriate warranties; and
the assignor or the assignee may not want the debtor to be made aware of the sale price . This occurs particularly where the sale price is at a significant discount.

If the debtor is not a party to the deed of assignment, proper notice of the assignment must be provided.

An assignment of debt that has not been properly perfected will not constitute a legal debt owing to the assignee. Rather, the legal right to recover the debt will remain with the assignor. Only an equitable interest in the debt will transfer to the assignee.

Enforcing an Assigned Debt

After validly assigning a debt (in writing and notice has been provided to the debtor’s last known place of residence), the assignee is entitled to take any legal steps available to them to recover the outstanding debt. These recovery options include:

commencing court proceedings;
obtaining a judgment; and
enforcement of that judgment.

Suppose court proceedings have been commenced or judgment already entered in favour of the assignor. In that case, the assignee must take steps to have the proceedings or judgment formally changed into the assignee’s name.

In our experience, recovery of an assigned debt can be problematic because:

debtors often do not understand the concept of debt assignment and may not be aware that their credit contract contains an assignment of debt clause;
disputes can arise as to whether a lawful assignment of debt has arisen. A debtor may claim that the assignor did not provide them with the requisite notice of the assignment, or in some cases, a contract will specifically exclude the creditor from legally assigning a debt;
proper records of the notice of assignment provided to the debtor must be maintained. If proper records have not been kept, it may be difficult to prove that notice has been properly given, which may invalidate the legal assignment; and
the debtor has the right to make an offsetting claim in defence to any recovery action taken by the assignee. A debtor may raise an offsetting claim which has arisen out of a previous arrangement with the assignor (which the assignee may not be aware of). For example, the debtor may have entered into an agreement with the assignor whereby the assignor agreed to accept a lesser amount of the debt owed by way of settlement. Because the assignee acquires the same rights and obligations of the assignor, the terms of that previous settlement agreement will bind the assignee. The court may find that there is no debt owing by the debtor. In this case, the assignee will have been assigned nothing of value.

Other Considerations

When assigning a debt, it is essential that the assignee, in particular, considers relevant statutory limitation periods for commencing proceedings or enforcing a judgment debt . In New South Wales, the time limit:

to file legal proceedings to recover debts is six years from the date of last payment or when the debtor admitted in writing that they owed the debt; and
for enforcing a judgment debt is 12 years from the date of judgment.

An assignment of a debt does not extend these limitation periods.

While there can be benefits to both the assignor and the assignee, an assignment of debt will be unenforceable if done incorrectly. Therefore, if you are considering assigning or being assigned a debt, it is important to seek legal advice. If you need help with drafting or reviewing a deed of assignment or wish to recover a debt that has been assigned to you, contact LegalVision’s debt recovery lawyers on 1300 544 755 or fill out the form on this page.

An assignment of debt is an agreement that transfers a debt owed to one entity, to another. A creditor does not need the consent of the debtor to assign a debt.

Once the assignee has validly assigned a debt, they are entitled to take any legal steps available to them to recover the outstanding debt. This includes commencing court proceedings, obtaining a judgment and enforcement of that judgment.

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Debt Assignment and Assumption Agreement

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Debt Assignment and Assumption Agreement

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A Debt Assignment and Assumption Agreement is a very simple document whereby one party assigns their debt to another party, and the other party agrees to take that debt on. The party that is assigning the debt is the original debtor; they are called the assignor. The party that is assuming the debt is the new debtor; they are called the assignee.

The debt is owed to a creditor.

This document is different than a Debt Settlement Agreement , because there, the original debtor has paid back all of the debt and is now free and clear. Here, the debt still stands, but it will just be owed to the creditor by another party.

This is also different than a Debt Acknowledgment Form , because there, the original debtor is simply signing a document acknowledging their debt.

How to use this document

This document is extremely short and to-the-point. It contains just the identities of the parties, the terms of the debt, the debt amount, and the signatures. It is auto-populated with some important contract terms to make this a complete agreement.

When this document is filled out, it should be printed, signed by the assignor and the creditor, and then signed by the assignee in front of a notary. It is important to have the assignee's signature notarized, because that is the party that is taking on the debt.

Applicable law

Debt Assignment and Assumption Agreements are generally covered by the state law where the debt was originally incurred.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

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How Does Debt Assignment Work?

Chloe Meltzer | December 07, 2023

Legal Expert Chloe Meltzer, MA

Chloe Meltzer is an experienced content writer specializing in legal content creation. She holds a degree in English Literature from Arizona State University, complemented by a Master’s in Marketing from California Polytechnic State University-San Luis Obispo.

Edited by Hannah Locklear

Editor at SoloSuit Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: What are your options when your debt has been assigned to a debt collector? Find out why a creditor might have assigned your debt and how to deal with it.

Debt assignment refers to a transfer of debt. This includes all of the associated rights and obligations, as it goes from a creditor to a third party. Debt assignment is essentially the legal transfer of debt to a debt collector (or debt collection agency). After this agency purchases the debt, they will have the responsibility to collect the debt, meaning you will pay your debt to them.

File a response with SoloSuit to win against debt collectors.

Find Out How Debt Assignment Works

When a creditor or lender no longer wants to be responsible for attempting to collect your debt, they will sell your debt to a third party. When this occurs, a Notice of Assignment (NOA) is sent out to you. This should inform you of who is responsible for collecting the rest of your loan or debt.

Legally you must be notified if your debt is assigned to someone new. This is to ensure that you know where to make payments to. If you are not aware of the new assignment, you may send payments to the wrong location which could force you into unintentional default.

Know How the FDCPA Protects You

Third-party debt collectors must act according to the Fair Debt Collection Practices Act (FDCPA). This federal law restricts the methods by which a debt collector can contact you, and attempt to collect debts. The FDCPA regulates the time of day or night a collector can make contact, how often they can call, as well as what they say and how they say it.

If you believe that a debt collector has violated the FDCPA, then you may be able to file a suit against that company. You may also be able to sue for damages or attorney fees.

Stand up to debt collection agencies with SoloSuit.

Learn Why a Creditor Assigns Debt

There are a few reasons why a creditor may assign your debt. Typically, the most common reason is to reduce their risk. By assigning and selling the debt it is no longer their liability. They can ensure they recoup some of their money, and appease investors as well.

Discover How Purchasing a Debt Differs from Debt Assignment

The purchase of debt occurs before assignment. Before the assignment of delinquent debt, a collection agency will be required to purchase it. This is often done at a far lower price, while they still attempt to recoup the entire debt. Because of this, it allows you to attempt to settle your debt for less.

Understand Why Debt Assignment Is Often Criticized

The process of assigning debt is often seen as unethical. With threats, harassment, and lies of all kinds, many debt buyers have been accused of violating the FDCPA. Because of this, debt assignment has seen a good amount of criticism. Some cases have even seen consumers charged with debts that have already been settled or paid .

Nevertheless, this shows how important it is to be on top of your debts. The number one choice you should make with any debt or debt assignment is to respond to all correspondence. This will ensure that you stay in compliance, and act when you need to.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

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How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Connecticut
Massachusetts
Mississippi
New Hampshire
North Carolina
North Dakota
Pennsylvania
Rhode Island
South Carolina
South Dakota
Vermont ; Vermont (Small Claims court)
West Virginia

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

11 Charter Communications
AAA Collections
Aargon Agency Inc
Absolute Resolutions Investments LLC
ACEI Collections
Account Services
Accredited Collection Services
Advanced Recovery Systems
AFNI Collections
Alco Capital Group LLC
Aldous and Associates
Alliance Collections
Alliance One
Alliant Capital Management
Alpha Recovery Corp
Alltran Financial
Alltran Health
Alorica Inc.
Amcol Clmbia in Court
American Coradius International
American Profit Recovery
American Recovery Service
Americollect
AmSher Collection Services
Apelles LLC
AR Resources
ARC Collections
ARM Solutions
Arrow Financial Services
ARS National Services
ARSC Debt Collectors
AscensionPoint Recovery Services
Asset Acceptance LLC
Asset Recovery Solutions
Associated Credit Services
Atlantic Credit and Finance
Atradius Collections
Automated Collection Services, Inc.
Autovest LLC
AWA Collections
Balekian Hayes
Bay Area Receivables
BCA Financial Services
BC Services
Benuck and Rainey
Berlin-Wheeler
Bluebonnet Financial LLC
Bonneville Collections
Bull City Financial
Bureaus Investment Group
Caine and Weiner
Capio Partners
Capital Accounts
Capital Collections
Capital Management Services
Carmel Financial/New Coast Direct
Cavalry SPV I LLC
CBCS Collections
CBV Collections
CCB Credit Services
CCS Collections
CCS Offices
Central Mediation Services
Central Portfolio Control
Cerastes LLC
Choice Recovery
Choice Recovery Inc
CKS Financial
CKMS Financial
Client Services
CMRE Financial Services
Coast Professional
Comenity Bank Debt Collection
Commonwealth Financial
ConServe Debt Collection
Consumer Collection Management
Contract Callers Inc
Convergent Healthcare Recoveries
Convergent Outsourcing
Couch Conville & Blitt
Covington Credit
Credco in Court
Credence Resource Management
Credit Bureau Systems
Credit Control Corporation
Credit Management Company
Credit Management LP
Credit Systems
CTC Debt Collector
CVCS Debt Collection
Cypress Financial Recoveries
D&A Services
Daniels, Norelli, Cecere & Tavel P.C.
DCM Services
Debt Recovery Solutions
Delanor Kemper & Associates
Department Stores National Bank
Direct Recovery Associates
Discover Collections
Diversified Adjustment
Diversified Consultants
Diversified Recovery Bureau
DNF Associates, LLC
Dynamic Collectors
Eagle Accounts Group, Inc.
Eastern Account System
Ellington and Associates Collections
Encore Capital Group
Enerson Law
Enerson Law LLC
Enhanced Recovery Company
ERC Collections
ERSolutions
Estate Information Services
Equable Ascent Financial
Everest Business Funding
Executive Credit Management
Faber and Brand
Factual Data
Falls Collection Service
FCO Collections and Outsourcing
FIA Card Services
fin rec svc (Financial Recovery Services)
First Federal Credit Credit Control
First Financial Bank
First Portfolio Ventures LLC
First Progress
FirstPoint Collection Resources
Firstsource Advantage
FMA Alliance
Forster & Garbus
Franklin Collection Services
Freedom Plus
Freshview Solutions
Frontline Asset
Frost Arnett
Fulton Friedman & Gullace LLP
Galaxy International Purchasing, LLC
GC Debt Collection
GC Services
General Revenue Corporation
GLA Collections
Glass Mountain Capital
Glasser and Glasser
Global Credit Collection Corp
Global Trust Management
GMAC Financing
Golden 1 Credit Union
Grant and Weber
Grant Mercantile Agency
Gulf Coast Collection Bureau
Halsted Financial Services
Harris and Harris
Harvard Collection
Harvest Credit Management
Helvey and Associates
Hollis Cobb
Holloway Moxley
Hosto Buchan
Howard Lee Schiff
H&R Accounts
Hudson & Keyse LLC?
Hunter Warfield
Impact Receivables Management
Innovative Recovery
Integras Capital Recovery LLC
Javitch Block
JHPDE Finance 1 LLC
JP Receivables Management Partners
Kenneth Eisen and Associates
KeyBank student loans
Kirschenbaum, Phillips & Levy P.C.
KLS Financial Services
Kramer & Frank
Lakeside Collection
Lending Club
Lincoln and Morgan Kabbage
Linebarger Goggan Blair & Sampson LLP
Lockhart Collection Agency
LJ Ross Associates
LTD Collections
Malcolm S. Gerald and Associates
Malen & Associates
Mandarich Law Group
Mannbracken
Marcam Associates
MARS Inc. Collections
MCA Management Company
McCarthy, Burgess & Wolff
Meade & Associates
Mercantile Adjustment Bureau
Merchants Credit Association
MGM Collections
Michael J Adams PC
Midland Funding LLC
Mid-South Adjustment
Monarch Recovery
Monterey Financial
Moss Law Firm
Mountain Land Collections
MRS Associates
MSW Capital LLC
Mullooly, Jeffrey, Rooney & Flynn
Nathan and Nathan PC
National Collegiate Trust
National Credit Adjusters
National Credit Care
National Credit Systems
National Enterprise Systems
National Recovery Agency
National Recovery Solutions
Nationwide Credit
Nationwide Recovery Services
Nationwide Recovery Systems
NCO Financial Systems Incorporated
North American Recovery
Northland Group
Northstar Capital Acquisition
Northstar Location Services
NRC Collection Agency
Oliver Adjustment Company
Oliphant Financial, LLC
P&B Capital Group
PCB Collections Agency
Palisades Collection LLC
Pallida LLC
Paragon Contracting Services
Paragon Revenue Group
Payday Loan Debt Collectors
Pendrick Capital Partners
Penn Credit
Perdue Brandon
Persolve LLC
Phillips & Cohen Associates
Phoenix Financial Services
Pioneer Credit Recovery
PRA Group, Inc.
Pressler, Felt & Warshaw LLP
Prestige Services, Inc.
Prince Parker and Associates
Professional Finance Company
Progressive Management Systems
Provest Law
Quaternary Collection Agency
RAB Collection Agency
Rash Curtis and Associates
Radius Global SOL
Radius Global Solutions
Rawlings Company
Razor Capital
Real Time Resolutions
Receivables Performance Management
Regents and Associates
Reliant Capital Solutions
Resurgent Capital Services and LVNV Funding
Revco Solutions
Revenue Enterprises LLC
Revenue Group
RGS Financial, Inc.
RMP LLC in Court
RMP Services
RS Clark and Associates
RTR Financial Services
Rubin & Rothman
Salander Enterprises LLC
Samara Portfolio Management
SCA Collections
Scott Parnell and Associates
Second Round Collections
Second Round Sub LLC
Selip & Stylianou LLP
Sequium Asset Solutions
Sessoms and Rogers
Sherman Acquisition
Sherman Financial Group
SIMM Associates
Source Receivables Management
Southern Management Systems
Southwest Credit Group
Spire Recovery Solutions
SRS Company
Stark Collection Agency
State Collection Service
Stenger and Stenger
Stillman Law Office
Summit Account Resolution
Sunrise Credit Services
Superlative RM Debt Collector
Suttell and Hammer
Synergetic Communication
Synerprise Consulting
The Law Office of Michael J Scott
Trellis Company
Troy Capital
TRS Recovery Services
Tulsa Teachers Credit Union
UCB Collection
Unifin Debt Collector
Universal Credit Services
US Bank Collections
USAA collections
USCB America
Valentine and Kebartas
Valley Servicing
Vance & Huffman LLC
Van Ru Credit Corporation
Velo Law Office
Velocity Investments
Viking Client Services
Wakefield and Associates
Waypoint Resource Group
Weinberg and Associates
Weltman, Weinberg & Reis
Westwood Funding
Williams and Fudge
Wilshire Consumer Credit
Wolpoff & Abramson
Worldwide Asset Purchasing
www.AutomotiveCredit.com
Zarzaur & Schwartz
Zwicker & Associates

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

American Express ; American Express – Debt Collection
Bank of America
Best Buy Credit Card
Capital One
Credit One Bank
Old Navy Credit Card
PayPal Synchrony Card
Regional Finance
Retailers National Bank
Reunion Student Loan Finance Corporation
SYNCB/PPEXTR
Synchrony Bank
Synchrony Walmart Card
Target National Bank
Wells Fargo
Can I Pay My Original Creditor Instead of a Debt Collection Agency?
Can I Settle a Debt with the Original Creditor?

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Am I Responsible for My Spouse's Medical Debt?
Do I Need a Lawyer for Medical Bills?
Do I Need a Lawyer to Fight Medical Bill Debt?
Does Bankruptcy Clear Medical Debt?
How Much Do Collection Agencies Pay for Medical Debt?
How to Find Medical Debt Forgiveness Programs
Is There a Statute of Limitations on Medical Bills?
Medical Debt Statute of Limitations by State
Summoned to Court for Medical Bills — What Do I Do?
Summoned to Court for Medical Bills? What to Do Next

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

How Arbitration Works
How to Find an Arbitration Clause in Your Credit Agreement
How to Make a Motion to Compel Arbitration
How to Make a Motion to Compel Arbitration in Florida
How to Make a Motion to Compel Arbitration Without an Attorney
How Credit Card Arbitration Works
Sample Motion to Compel Arbitration

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

1-800-390-7584
800-289-8004
800-955-6600
877-366-0169
877-591-0747
800-278-2420
800-604-0064
800-846-6406
877-317-0948
888-899-4332
888-912-7925
202-367-9070
502-267-7522

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

15 USC 1692 Explained
Does the Fair Credit Reporting Act Work in Florida?
FDCPA Violations List
How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
How to Make a Fair Debt Collection Practices Act Demand Letter
How to Submit a Transunion Dispute
How to Submit an Equifax Dispute
How to Submit an Experian Dispute
What Debt Collectors Cannot Do — FDCPA Explained
What Does Account Information Disputed by Consumer Meets FCRA Requirements Mean?
What does “meets FCRA requirements” mean?
What does FCRA stand for?
What is the Consumer Credit Protection Act

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Debt Collection Laws in Alabama
Debt Collection Laws in Alaska
Debt Collection Laws in Arizona
Debt Collection Laws in Arkansas
Debt Collection Laws in California
Debt Collection Laws in Colorado
Debt Collection Laws in Connecticut
Debt Collection Laws in Delaware
Debt Collection Laws in Florida
Debt Collection Laws in Georgia
Debt Collection Laws in Hawaii
Debt Collection Laws in Kansas
Debt Collection Laws in Idaho
Debt Collection Laws in Illinois
Debt Collection Laws in Indiana
Debt Collection Laws in Iowa
Debt Collection Laws in Kentucky
Debt Collection Laws in Louisiana
Debt Collection Laws in Massachusetts
Debt Collection Laws in Michigan
Debt Collection Laws in Minnesota
Debt Collection Laws in Mississippi
Debt Collection Laws in Missouri
Debt Collection Laws in Montana
Debt Collection Laws in Nebraska
Debt Collection Laws in Nevada
Debt Collection Laws in New Hampshire
Debt Collection Laws in New Jersey
Debt Collection Laws in New Mexico
Debt Collection Laws in New York
Debt Collection Laws in North Carolina
Debt Collection Laws in North Dakota
Debt Collection Laws in Ohio
Debt Collection Laws in Oklahoma
Debt Collection Laws in Oregon
Debt Collection Laws in Pennsylvania
Debt Collection Laws in Rhode Island
Debt Collection Laws in South Carolina
Debt Collection Laws in South Dakota
Debt Collection Laws in Tennessee
Debt Collection Laws in Texas
Debt Collection Laws in Vermont
Debt Collection Laws in Virginia
Debt Collection Laws in Washington
Debt Collection Laws in West Virginia
Debt Collection Laws in Wisconsin
Debt Collection Laws in Wyoming

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Statute of Limitations on Debt Collection in Alabama
Statute of Limitations on Debt Collection in Alaska
Statute of Limitations on Debt Collection in Arizona
Statute of Limitations on Debt Collection in Arkansas
Statute of Limitations on Debt Collection in California
Statute of Limitations on Debt Collection in Connecticut
Statute of Limitations on Debt Collection in Colorado
Statute of Limitations on Debt Collection in Delaware
Statute of Limitations on Debt Collection in Florida
Statute of Limitations on Debt Collection in Georgia
Statute of Limitations on Debt Collection in Hawaii
Statute of Limitations on Debt Collection in Illinois
Statute of Limitations on Debt Collection in Indiana
Statute of Limitations on Debt Collection in Iowa
Statute of Limitations on Debt Collection in Kansas
Statute of Limitations on Debt Collection in Louisiana
Statute of Limitations on Debt Collection in Maine
Statute of Limitations on Debt Collection in Maryland
Statute of Limitations on Debt Collection in Michigan
Statute of Limitations on Debt Collection in Minnesota
Statute of Limitations on Debt Collection in Mississippi
Statute of Limitations on Debt Collection in Missouri
Statute of Limitations on Debt Collection in Montana
Statute of Limitations on Debt Collection in Nebraska
Statute of Limitations on Debt Collection in Nevada
Statute of Limitations on Debt Collection in New Hampshire
Statute of Limitations on Debt Collection in New Jersey
Statute of Limitations on Debt Collection in New Mexico
Statute of Limitations on Debt Collection in New York
Statute of Limitations on Debt Collection in North Carolina
Statute of Limitations on Debt Collection in North Dakota
Statute of Limitations on Debt Collection in Oklahoma
Statute of Limitations on Debt Collection in Oregon
Statute of Limitations on Debt Collection in Oregon (Complete Guide)
Statute of Limitations on Debt Collection in Pennsylvania
Statute of Limitations on Debt Collection in Rhode Island
Statute of Limitations on Debt Collection in South Carolina
Statute of Limitations on Debt Collection in South Dakota
Statute of Limitations on Debt Collection in Tennessee
Statute of Limitations on Debt Collection in Texas
Statute of Limitations on Debt Collection in Utah
Statute of Limitations on Debt Collection in Vermont
Statute of Limitations on Debt Collection in Virginia
Statute of Limitations on Debt Collection in Washington
Statute of Limitations on Debt Collection in West Virginia
Statute of Limitations on Debt Collection in Wisconsin
Statute of Limitations on Debt Collection in Wyoming

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

Alabama Court Case Search—Find Your Lawsuit
Alaska Court Case Search — Find Your Lawsuit
Arizona Court Case Search - Find Your Lawsuit
Arkansas Court Case Search — Find Your Lawsuit
California Court Case Search- Find Your Lawsuit
Colorado Court Case Search — Find Your Lawsuit
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Wyoming Court Case Search — Find Your Lawsuit

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Stop Wage Garnishment in Alabama
Stop Wage Garnishment in Alaska
Stop Wage Garnishment in Arizona
Stop Wage Garnishment in Arkansas
Stop Wage Garnishment in California
Stop Wage Garnishment in Colorado
Stop Wage Garnishment in Connecticut
Stop Wage Garnishment in Delaware
Stop Wage Garnishment in Florida
Stop Wage Garnishment in Georgia
Stop Wage Garnishment in Hawaii
Stop Wage Garnishment in Idaho
Stop Wage Garnishment in Illinois
Stop Wage Garnishment in Indiana
Stop Wage Garnishment in Iowa
Stop Wage Garnishment in Kansas
Stop Wage Garnishment in Kentucky
Stop Wage Garnishment in Louisiana
Stop Wage Garnishment in Maine
Stop Wage Garnishment in Maryland
Stop Wage Garnishment in Massachusetts
Stop Wage Garnishment in Michigan
Stop Wage Garnishment in Minnesota
Stop Wage Garnishment in Mississippi
Stop Wage Garnishment in Missouri
Stop Wage Garnishment in Montana
Stop Wage Garnishment in Nevada
Stop Wage Garnishment in New Hampshire
Stop Wage Garnishment in New Jersey
Stop Wage Garnishment in New Mexico
Stop Wage Garnishment in New York
Stop Wage Garnishment in North Carolina
Stop Wage Garnishment in North Dakota
Stop Wage Garnishment in Ohio
Stop Wage Garnishment in Oklahoma
Stop Wage Garnishment in Oregon
Stop Wage Garnishment in Pennsylvania
Stop Wage Garnishment in Rhode Island
Stop Wage Garnishment in South Carolina
Stop Wage Garnishment in South Dakota
Stop Wage Garnishment in Tennessee
Stop Wage Garnishment In Texas
Stop Wage Garnishment In Utah
Stop Wage Garnishment in Vermont
Stop Wage Garnishment in Virginia
Stop Wage Garnishment in Washington
Stop Wage Garnishment in West Virginia
Stop Wage Garnishment in Wisconsin
Stop Wage Garnishment in Wyoming

Other wage garnishment resources

Bank Account Garnishment and Liens in Texas
Can I Stop Wage Garnishment?
Can My Wife's Bank Account Be Garnished for My Debt?
Can Payday Loans Garnish Your Wages?
Can pensions be garnished?
Can Private Disability Payments Be Garnished?
Can Social Security Disability Be Garnished?
Can They Garnish Your Wages for Credit Card Debt?
Can You Stop a Garnishment Once It Starts?
Guide to Garnishment Limits by State
How Can I Stop Wage Garnishments Immediately?
How Long Before a Creditor Can Garnish Wages?
How Long Does It Take to Get Garnished Wages Back?
How to Fight a Wage Garnishment
How to Prevent Wage Garnishment
How to Stop a Garnishment
How to Stop Social Security Wage Garnishment
How to Stop Wage Garnishment — Everything You Need to Know
New York Garnishment Laws – Overview
Ohio Garnishment Laws — What They Say
Wage Garnishment Lawyer
What Is Wage Garnishment?

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to Settle a Debt in Alabama
How to Settle a Debt in Alaska
How to Settle a Debt in Arizona
How to Settle a Debt in Arkansas
How to Settle a Debt in California
How to Settle a Debt in Colorado
How to Settle a Debt in Delaware
How to Settle a Debt in Florida
How to Settle a Debt in Hawaii
How to Settle a Debt in Idaho
How to Settle a Debt in Illinois
How to Settle a Debt in Indiana
How to Settle a Debt in Iowa
How to Settle a Debt in Kansas
How to Settle a Debt in Kentucky
How to Settle a Debt in Louisiana
How to Settle a Debt in Maryland
How to Settle a Debt in Massachusetts
How to Settle a Debt in Michigan
How to Settle a Debt in Minnesota
How to Settle a Debt in Mississippi
How to Settle a Debt in Missouri
How to Settle a Debt in Montana
How to Settle a Debt in Nebraska
How to Settle a Debt in Nevada
How to Settle a Debt in New Hampshire
How to Settle a Debt in New Jersey
How to Settle a Debt in New Mexico
How to Settle a Debt in New York
How to Settle a Debt in North Carolina
How to Settle a Debt in North Dakota
How to Settle a Debt in Ohio
How to Settle a Debt in Oklahoma
How to Settle a Debt in Oregon
How to Settle a Debt in Pennsylvania
How to Settle a Debt in South Carolina
How to Settle a Debt in South Dakota
How to Settle a Debt in Tennessee
How to Settle a Debt in Texas
How to Settle a Debt in Utah
How to Settle a Debt in Vermont
How to Settle a Debt in Virginia
How to Settle a Debt in West Virginia
How to Settle a Debt in Wisconsin
How to Settle a Debt in Wyoming

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

American Express
Capitol One
Cavalry SPV
Midland Funding
Moore Law Group
Navy Federal
NCB Management Services
Portfolio Recovery

Other debt settlement resources

Best Debt Settlement Companies
Can I Settle a Debt After Being Served?
Can I Still Settle a Debt After Being Served?
Can You Settle a Warrant in Debt Before Court?
Debt Management vs. Debt Settlement
Debt Settlement Pros and Cons
Debt Settlement Scam
Do I Need to Hire a Debt Settlement Lawyer?
Do You Need a Debt Settlement Attorney in Houston Texas?
Do You Owe Taxes on Settled Debt?
Here’s a Sample Letter to Collection Agencies to Settle Debt
How Can I Settle My Credit Card Debt Before Going to Court?
How Do I Know if a Debt Settlement Company Is Legitimate?
How Long Does a Lawsuit Take to Settle?
How Much Do Settlement Companies Charge?
How I Settled My Credit Card Debt With Discover
How to Make a Debt Settlement Agreement
How to Make a Settlement Offer to Navient
How to Negotiate a Debt Settlement with a Law Firm
How to send Santander a settlement letter
How to Settle Debt for Pennies on the Dollar
How to Settle Debt in 3 Steps
How to Settle Debt with a Reduced Lump Sum Payment
How to Settle a Credit Card Debt Lawsuit — Ultimate Guide
How to Settle Credit Card Debt When a Lawsuit Has Been Filed
If You Are Using a Debt Relief Agency, Can You Settle Yourself with the Creditor?
Largest Debt Settlement Companies
Should I Settle a Collection or Pay in Full?
Summary of the Equifax Data Breach Settlement
The Advantages of Pre-Settlement Lawsuit Funding
The FTC Regulates Debt Settlement Through the Telemarketing Sales Rule
The Pros and Cons of Debt Settlement
What Happens if I Reject a Settlement Offer?
What Happens if You Don't Pay a Debt Settlement?
What Happens When You Settle a Debt?
What Is A Debt Settlement Agreement?
What is Debt Settlement?
What Percentage Should I Offer to Settle Debt?
What to Ask for in a Settlement Agreement
Who Qualifies for Debt Settlement?
Will Collection Agencies Settle for Less?
5 Signs of a Debt Settlement Scam

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

Accredited Debt Relief Debt Settlement Reviews
Advance America Loan Review
ACE Cash Express Personal Loan Review
BMG Money Loan Review
BMO Harris Bank Review: Pros and Cons
Brite Solutions Debt Settlement Reviews
Caliber Home Loans Mortgage Review
Cambridge Debt Consolidation Review
Campus Debt Solutions Review
CashNetUSA Review
Century Debt Settlement Reviews
ClearPoint Debt Management Review
Click N Loan Reviews
CuraDebt Debt Settlement Review
CuraDebt Reviews: Debt Relief Assistance For California Residents
Debt Eraser Review
Debtconsolidation.com Debt Settlement Reviews
Eagle One Debt Settlement Reviews
Freedom Debt Relief Debt Settlement Reviews
Global Holdings Debt Settlement Reviews
Golden 1 Credit Union Personal Loan Review
Honda Financial Services Review
iLending Reviews
Infinite Law Group Debt Settlement Reviews
JG Wentworth Debt Settlement Reviews
LoanMart Reviews
Mastriani Law Firm Review
Milestone ® Mastercard ® Review
ModoLoan Review
Money Management International Reviews
M&T Mortgage Company Review
National Debt Relief Debt Settlement Reviews
New Era Debt Settlement Reviews
OppLoans Review
Pacific Debt Relief Reviews
Palisade Legal Group Debt Settlement Reviews
PCG Debt Consolidation Review
PenFed Auto Loan Review
Priority Plus Financial Reviews
Roseland Associates Debt Consolidation Review
SDCCU Debt Consolidation Review
Speedy Cash Loans Review
Symple Lending Reviews
Tripoint Lending Reviews
TurboDebt Debt Settlement Reviews
Turnbull Law Group Debt Settlement Reviews
United Debt Settlement Reviews
Upgrade Auto Loans Reviews

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

3 Ways to Repair Your Credit with Debt Collections
5 Pros and Cons of Credit Cards & How to Use Them Wisely
6 Reasons Your Credit Score Isn't Going Up
Bankruptcy vs Debt Settlement: Which is Better for Your Credit Score?
Does Debt Consolidation Hurt Your Credit Score?
Does Wage Garnishment Affect Credit?
Guide to Disclosing Income on Your Credit Card Application
How Long Does It Take to Improve My Credit Score After Debt Settlement?
How Often Does Merrick Bank Increase Your Credit Limit?
How to fix your credit to buy a house
How to Handle Debt and Improve Credit
How to Raise My Credit Score 40 Points Fast
If I Settle with a Collection Agency, Will It Hurt My Credit?
Is 600 a Good Credit Score?
Obama Credit Card Debt Relief Program – How to Use It
Sample credit report dispute letter
Should I Use Credit Journey?
Understanding myFICO: Your Gateway to Better Credit
What Does "DLA" Mean on a Credit Report?
What Is A Good Credit Score For Businesses?
What is American Credit Acceptance?
What is CBNA on my credit report?
What is CreditFresh?
Who Made the Credit Score?
Why is THD/CBNA on my credit report?

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Budgeting Strategies for Students: How to Manage Your Finances Wisely
Can You Go to Jail for Not Paying Student Loans?
Can You Settle Student Loan Debt?
Do Student Loans Go Away After 7 Years? (2022 Guide)
Do You Need a Student Loan Lawyer? (Complete Guide)
Does Student Debt Die With You?
How to Manage a Student Debt
How to Get Rid of Student Loan Debt
Mandatory Forbearance Request Student Loan Debt Burden
Negative Economic Effects of Student Loan Debt on the US Economy
Pros and Cons of Taking a Student Loan
Regional Adjustment Bureau Student Loans – How to Win
The Real Impact of Student Debt: How Our Brains Handle It
Why It's Important to Teach Students How to Manage Debt
5 Alternatives to Taking a Student Loan
5 Tips for Students: How to Create a Realistic and Effective Budget
7 College Financial Planning Tips for Students
7 Things to Consider When Taking a Student Loan
7 Tips to Manage Your Student Loans

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Accleration Clause — Definition
Adjuster - Defined
Adverse Action — Definition
Affidavit — A Definition
Annulment vs. divorce – what's the difference?
Anticipatory Repudiation — Definition
Bench Trial — Defined
Certificate of Debt: A Definition
Commuted Sentence – Definition
Constructive Eviction - Defined
Constructive Discharge - Definition
Defendant - Definition and Everything You Need to Know
Demurred – Definition
Dischargeable - Definition
Disclosures — Definition
False Imprisonment Defined
Good Faith Exception – Definition
Hearsay — A Definition
HOEPA – Definition
Implied Contract – Definition
Injunctive Relief — A Definition
Intestate–Defined
Irrevocable Agreement — Defined
Joint Custody–Defined
Litigator — A Definition
Mediation - Definition
Medical Malpractice — Definition
Mistrial — A Definition
Mitigating Circumstances — Definition
Motion for Summary Judgment — Definition
Nolle Prosequi – Definition
Nunc Pro Tunc — A Definition
Plaintiff - Definition and Everything You Need to Know
Pro Se - Defined
Probable Cause Hearing — Definition
Restitution – Definition
Sole Custody-Defined
Statute of Limitations—Definition and Everything You Need to Know
Summons—Definition
Tenancy in Common – Defined
Time Is of the Essence – Definition
What Is the Bankruptcy Definition of Consumer Debt?
Wrongful Termination–Defined

Get answers to these FAQs on debt collection

Am I Responsible for My Husband's Debts If We Divorce?
Am I Responsible for My Parent's Debt if I Have Power of Attorney?
Can a Collection Agency Add Fees on the Debt?
Can a Collection Agency Charge Interest on a Debt?
Can a Credit Card Company Sue Me?
Can a Debt Collector Freeze Your Bank Account?
Can a Debt Collector Leave a Voicemail?
Can a Debt Collector Take My Car in California?
Can a Judgment Creditor Take my Car?
Can a Process Server Leave a Summons Taped to My Door?
Can an Eviction Be Reversed?
Can Credit Card Companies Garnish Your Wages?
Can Credit Cards Garnish Wages?
Can Debt Collectors Call From Local Numbers?
Can Debt Collectors Call You at Work in Texas?
Can Debt Collectors Call Your Family?
Can Debt Collectors Leave Voicemails?
Can I Pay a Debt Before the Court Date?
Can I Rent an Apartment if I Have Debt in Collection?
Can I Sue the President for Emotional Distress?
Can the SCRA Stop a Default Judgment?
Can the Statute of Limitations be Extended?
Can You Appeal a Default Judgement?
Can You Get Unemployment if You Quit?
Can You Go to Jail for a Payday Loan?
Can You Go to Jail for Credit Card Debt?
Can You Negotiate with Westlake Financial?
Can You Record a Call with a Debt Collector in Your State?
Can You Serve Someone with a Collections Lawsuit at Their Work?
Can You Sue Someone Who Has Filed Chapter 7 Bankruptcy?
Capital One is Suing Me – How Can I Win?
Debt Snowball vs. Debt Avalanche: Which One Is Apt for You?
Do 609 Letters Really Work?
Do Debt Collectors Ever Give Up?
Do I Have Too Much Debt to Divorce My Spouse?
Do I Need a Debt Collection Defense Attorney?
Do I Need a Debt Negotiator?
Do I Need a Legal Coach?
Do I Need a Payday Loans Lawyer?
Does a Living Trust Protect Your Assets from Lawsuits?
Does Chase Sue for Credit Card Debt?
Does Debt Consolidation Have Risks?
Does Midland Funding Show Up to Court?
How Can I Get Financial Assistance in PA?
How do Debt Relief Scams Work?
How Do I Find Out If I Have Any Judgments Against Me?
How Do I Get Rid of a Judgment Lien on My Property?
How Do I Register on the Do Not Call List?
How Does a Flex Loan Work?
How Does Debt Affect Your Ability to Buy a Home?
How Does Finwise Bank Work?
How does Navy Credit debt forgiveness work?
How Does Payments.tsico Work?
How Important is it to Protect your Assets from Unexpected Events?
How is Debt Divided in Divorce?
How Long Do Creditors Have to Collect a Debt from an Estate?
How long do debt collectors take to respond to debt validation letters?
How Long Does a Judgement Last?
How Long Does a Judgment Last?
How Long Does a Levy Stay on a Bank Account?
How Long Does an Eviction Stay on Your Record?
How Many Calls from a Debt Collector is Considered Harassment?
How Many Times Can a Judgment Be Renewed in North Carolina?
How Many Times Can a Judgment be Renewed in Oklahoma?
How Much Do Collection Agencies Pay for Debt?
How Much Do You Have to Be in Debt to File Chapter 7?
How Much Does College Actually Cost?
How Often Do Credit Card Companies Sue for Non-Payment?
How Should You Respond to the Theft of Your Identity?
I am being sued because my identity was stolen - What do I do?
If a Car is Repossessed Do I Still Owe the Debt?
Is Debt Forgiveness Taxable?
Is Freedom Debt Relief a Scam?
Is it Legal for Debt Collectors to Call Family Members?
Is it Smart to Consolidate Debt?
Is LVNV Funding a Legitimate Company? - Them in Court
Is My Case in the Right Venue?
Is Portfolio Recovery Associates Legit? — How to Win
Is Severance Pay Taxable?
Is SoloSuit Worth It?
Is Someone with Power of Attorney Responsible for Debt After Death?
Is the NTB Credit Card Safe?
Is There a Judgment Against Me Without my Knowledge?
Is transworld systems legitimate? — How to win in court
Liquidate–What Does it Mean?
Litigation Finance: Is it a Good Investment?
Received a 3-Day Eviction Notice? Here's What To Do
Should I File Bankruptcy Before or After a Judgment?
Should I Hire a Civil Litigation Attorney?
Should I Hire a Civil Rights Lawyer?
Should I Hire a Litigation Attorney?
Should I Marry Someone With Debt?
Should I Pay Off an Old Apartment Debt?
Should I Send a Demand Letter Before a Lawsuit?
Should I Use My IRA to Pay Off Credit Card Debt?
Should You Communicate with a Debt Collector in Writing or by Telephone?
Should You Invest in Stocks While In Debt?
Subsidized vs. Unsubsidized Loans: Which is Better?
The Truth: Should You Never Pay a Debt Collection Agency?
What are the biggest debt collector companies in the US?
What are the different types of debt?
What Bank Is Behind Best Buy's Credit Card?
What Bank Issues Kohl's Credit Card?
What Bank Owns Old Navy Credit Card?
What Credit Bureau does Aqua Finance Use?
What Credit Bureau Does Truliant Use?
What Does “Apple Pay Transaction Under Review” Mean?
What Does a Debt Collector Have to Prove in Court?
What Does BAC Stand For?
What does HAFA stand for?
What Does Payment Deferred Mean?
What Does Reaffirmation of Debt Mean?
What Happens After a Motion for Default Is Filed?
What Happens at a Motion for Summary Judgment Hearing?
What Happens If a Defendant Does Not Pay a Judgment?
What Happens If a Process Server Can't Serve You?
What Happens if a Tenant Wins an Eviction Lawsuit?
What Happens If Someone Sues You and You Have No Money?
What Happens If You Avoid Getting Served Court Papers?
What Happens If You Don’t Pay Speedy Cash?
What Happens If You Ignore a Debt Collector?
What Happens If You Never Answer Debt Collectors?
What Happens When a Debt Is Sold to a Collection Agency
What Happens When a Debt Is Sold to a Collection Agency?
What If a Summons Was Served to the Wrong Person?
What If an Order for Default Was Entered?
What if I default on an Avant payment?
What If the Wrong Defendant Is Named in a Lawsuit?
What Is a Case Number?
What is a Certificate of Judgment in Ohio?
What Is a Certificate of Service?
What Is a Civil Chapter 61 Warrant?
What is a Civil Litigation Lawyer?
What Is a Consent Judgment?
What Is a CPN Number?
What Is a Debt Brokerage?
What Is a Debt-to-Sales Ratio?
What Is a Defamation Lawsuit?
What is a default judgment?— What do I do?
What Is a Libel Lawsuit?
What is a Lien on a House?
What is a Lien Release on a Car?
What is a Lien?
What Is a Motion to Strike?
What Is a Motion to Suppress?
What Is a Non-Dischargeable Debt in Tennessee?
What Is a Nonsuit Without Prejudice?
What Is a Preliminary Hearing?
What Is a Reaffirmation Agreement?
What Is a Request for Dismissal?
What Is a Rule 3.740 Collections Defense in California?
What Is a Slander Lawsuit?
What is a Stipulated Judgment?
What Is a Warrant in Debt?
What is ABC Financial Club Charge?
What is ACS Ed Services?
What is Advanced Call Center Technologies?
What is Alimony?
What Is Allied Interstate's Phone Number?
What is an Affirmative Defense?
What Is an Assignment of Debt?
What Is an Attorney Malpractice Lawsuit?
What Is an Unlawful Detainer Lawsuit?
What is Bank of America CashPro?
What is Bitty Advance?
What Is Celtic Bank?
What is Consumer Portfolio Services?
What Is Credence Resource Management?
What Is Debt Internment?
What Is Discover's 60/60 plan?
What is Evading the Police?
What Is Extinguishment of Debt?
What is First Investors Financial Services?
What is Global Lending Services?
What is homicide?
What Is Lexington Law Firm?
What is LGFCU Personal Loan?
What is Moral Turpitude?
What is Online Information Services?
What is Oportun?
What Is Service of Process in Texas?
What is sewer service?
What Is Summary Judgment?
What is Synchrony Bank's Hardship Program?
What Is T-Mobile's Phone Number for Debt Collection?
What Is the Amount of Money You Still Owe to Their Credit Card Company Called?
What is the Deadline for a Defendant's Answer to Avoid a Default Judgment?
What Is the Formula for Calculating Closing Costs?
What Is the Minimum Amount That a Collection Agency Will Sue For?
What Is the Phone Number for IQ Data?
What is the Purpose of the Truth in the Lending Act?
What is the status of my case?
What Is the Statute of Limitations on Debt in Washington?
What is the Telemarketing Sales Rule?
What is Unsecured Credit Card Debt?
What is WCTCB?
What is WFDS?
What is WUVISAAFT?
What is Zombie Debt, and How Do I Deal With It?
What Personal Property Can Be Seized in a Judgment?
What Should I Do If Crown Asset Management Suing Me?
What Should I Do If OneMain Financial Is Taking Me to Court?
What Should You Do if You Can't Pay Your Mortgage?
What states require a professional licensing number for debt collectors?
When Does Exeter Finance Repo Cars?
When Is My Rent Due Legally?
Where’s My Amended Tax Return?
Which Bank Does Macy's Credit Card Use?
Who is EOSCCA?
Who is Over the Loan Forgiveness Program at KHESLC?
Who is Synchrony Bank? — Beat Them in Court
Who is Jefferson Capital Systems LLC — How to win in court
Why Being Judgment Proof Is Not a Defense to a Lawsuit
Why Can't Lawyers Give Legal Advice?
Who is Synchrony Bank? — Them in Court
Why Do Debt Collectors Block Their Phone Numbers?
Why Do Lawyers Charge So Much?
Why Is the Sheriff Looking for Me?
Why Would a Sheriff Come to My House with Papers?
Will Bankruptcy Stop a Judgment?

How-to debt guides

How to Beat Westlake Portfolio Management
How to Access Free Debt Relief
How to Answer a Lawsuit for Debt Collection
How to Appear in Court by Phone
How to Apply For Unemployment Benefits in Florida
How to Avoid Getting Served
How to Beat a Bill Collector in Court
How to Beat a Debt Collector in Court
How to Beat a Lawsuit From a Debt Collector
How to Cancel a Merrick Bank Credit Card
How to Cancel an American Eagle Credit Card: A Step-by-Step Guide
How to Cancel JCPenney Credit Card
How to Deal with Debt Collectors
How to decide what to do next in a lawsuit
How to Defend Yourself in Court
How To Develop A Debt Repayment Plan That Works
How to Discharge a Debt with UCC
How to Dispute a Debt and Win
How to Dispute a False Positive Drug Test
How to dispute a rental collection
How to Drag Out an Eviction
How to Fight a Motion for Relief From Automatic Stay
How to Fight an Eviction
How to Fight Debt Collectors in Court and Win
How to File a Civil Answer in Kings County Supreme Court
How to File a Civil Answer With the Duval Clerk of Courts - Florida
How to File a Motion to Extend Time
How to File a Motion to Satisfy Judgment in Utah
How to File a Motion to Set Aside Judgment
How to File Chapter 13 Without an Attorney
How to File in Bergen County Superior Court
How to File in Deschutes County Circuit Court
How to File in Josephine County Courthouse
How to File in Miamisburg Municipal Court
How to File in Monmouth County Courthouse
How to File in Oak Grove Courthouse
How to File in Oregon Small Claims Court
How to File in Small Claims Court in Iowa
How to File in the Houston County Superior Court
How To Fill Out the PLD-C-001
How to Find My Bridgecrest Login
How to Find Out If You're Being Sued
How to Find Out What Collection Agency Owns Your Debt
How to Find the Attorney That is Suing You (Secret)
How to get a case dismissed without prejudice on statute of limitations
How to Get a Divorce in Florida
How to Get Credit Card Debt Relief
How to Get Debt Relief (Ultimate 50 State Guide 2023)
How to Get Out of a Bridgecrest Loan
How to get out of a RISE loan
How to Get Out of Debt Before Retirement
How to Get Out of Paying HOA Dues
How to Get Relief From a Gambling Debt
How to Hire a Mediator
How to Identify Age Discrimination in the Employment Act
How to identify fake and abusive debt collectors
How to Liquidate Credit Cards Into Cash
How to liquidate your assets to pay off debt
How to Make a 609 Letter That Really Works
How to Make a Debt Validation Letter - The Ultimate Guide (2023)
How to Make a Motion to Dismiss
How to Make a Motion to Lift Stay
How to Make a Motion to Vacate Judgment
How to Make a Will
How to Make an Eviction Appeal
How to Make Motion to Set Aside — Ultimate Guide
How to Negotiate a Lien on a House
How to Negotiate Credit Card Debts
How to Paramount Recovery
How To Pay for College and Avoid Debt
How to Pay off Your Destiny Credit Card
How to Perform Voluntary Repossession
How to Protect Your LLC with a Registered Agent Service
How to Recover from a Negative Bank Balance
How to Report the Cancellation of a Debt on a 1040
How to Respond to a Debt Collection Summons in Wyoming
How to Respond to a Debt Lawsuit vs United Collection Bureau
How to Respond to a Lawsuit Against Northstar Location Services
How to Respond to a Sheriff's Note On Your Door
How to respond to a Summons from VanSlam, Inc
How to Respond to Plaintiff's Counsel
How To Respond to Request for Admission
How to Satisfy a Judgment
How to Spot Common IRS Scams
How to Stop Eviction Lawyers
How to Stop Pinnacle Collections Agency
How to Support Employees With Debt – HR Solution
How to Use a Bonus to Solve Your Financial Problems
How to Travel Without Falling into Debt: Embracing the "Workcation"
How to Use King County Superior Court Electronic Filing
How to Use Montgomery County E-Filing
How to use My.Loanbuilder
How to Use the Doctrine of Unclean Hands
How to Walk Away from Credit Card Debt
How to Win a Citibank Debt Lawsuit
How to Win a Collect Pros Dispute
How to Win a Credit One Bank Lawsuit
How to Win a Debt Lawsuit Against Security Credit Services
How to Win a Freedom Debt Relief Lawsuit
How To Win a Mariner Finance Lawsuit
How to Win a Portfolio Recovery Associates Debt Lawsuit
How to Win When Sued by Blitt & Gaines
How to Win When Sued by Pharia LLC
How to Win When You're Sued by Paragon Revenue Group
How to Write a Hardship Letter
How to Write a Re-Aging Debt Letter

Learn more with these additional debt resources

A Comprehensive Guide to Business Loans in the U.S.
Bar Associations for All 50 States
Bank of America Is Suing Me For Credit Card Debt — How to win
Best Debt Consolidation Strategies
Biggest Debt Collection Agencies (2023)
Budgeting for Language Learning: Tips for Language Enthusiasts in Debt
BYU Personal Finance Online Course (How to Get Back on Track After a Debt Lawsuit)
Collection Agencies Phone Numbers
Cómo resolver una deuda
Cómo responder a una demanda civil por deuda
Countersuing a Company: A Step-By-Step Guide
Credit Card Debt Forgiveness Act Explained
Credit Card Debt Forgiveness Because of Disability
Credit Repair Scam
Debt Collection Ageny List (2022)
Debt Collection Attorneys Near Me
Debt Collection Litigation Industry Report 2023
Debt Relief Programs 2023
Debt Validation Letter Template
Debt-Free Strategies: Leveraging Cash Value Life Insurance to Achieve Financial Freedom
Defending Yourself in Court Against a Debt Collector
Difference Between a Trial and a Hearing
Do This If You're Sued by Express Recovery for Debt
Don't Make a Payment to Arnold Scott Harris
Everything You Need to Know About Getting Divorced
Forging a Path to Debt-Free College: Innovative Approaches to Financing Your Higher Education
Free Legal Aid in Bullhead City, Arizona
Free Legal Aid in Marion, Ohio
Fruit of the Poisonous Tree
Going to Court for Credit Card Debt - Everything You Need to Know
Going to Court for Credit Card Debt — Key Tips
Guide to Elderly Debt Collection Laws
Hearing Vs. Trial
Help! A Debt Collector Is Calling My Work
Help! I'm Being Sued by My Debt Collector
Here Is Ocwen's Mailing Address
Here's the Phone Number for Colinfobur (a Debt Collector)
Hours of Service Violations - 10 Effects
How a CPA Can Save Your Small Business Money
How Attorney Contingency Fees Work
How Credit Counseling and Financial Education Can Help You Manage Debt
How Debt Affects Mental Health
How Do You Demonstrate Financial Hardship?
How Eviction Works for Renters
How I Won My Credit Card Debt Lawsuit (Interview)
How Legal Billing Software Streamlines Trust Fund Management
How Not to Pay a Judgment
How the Consumer Financial Protection Bureau Debt Collection Rule Applies to You
How VPNs Protect Your Financial Privacy and Assist in Debt Relief
I Got Sued Because of Credit Card Fraud—How I Beat American Express in Court
I'm in Debt With No Job and No Money — What to Do
Importance of Identity Verification for Buy Now Pay Later Providers
Interview With A Former Debt Collector
Is Zombie Debt Still a Problem in 2019
Kentucky Debt Collection Laws — What You Need to Know
Lawsuit Deadline Calculator (The best one!)
Legal Aid in All 50 States
Legal Aid in the US Ultimate Guide (2022)
Legal Support Services for Debt Collection
Liquidated Debt vs. Unliquidated Debt
Living Trust vs. Will—Which One You Need
Luxury on a Budget: 10 Ways to Have Luxury Experiences While Managing Debt
Make Solomon and Solomon PC validate a debt
Make Stephen Einstein validate a debt
Massachusetts Debt Collection Laws – What They Say
Money Management Tips for Senior Citizens
Motion for Default Judgment - Everything You Need to Know
My Bank Account is Negative $1,000 — Fix it
National Debt Relief Screwed Me — What to Do Next
Navigating Your Finances Wisely: A Look at the Best Credit Cards of 2023
New Debt Collection Laws 2022
Nonsuit vs Dismissal in a Debt Collection Lawsuit
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Assignment is a legal term whereby an individual, the “assignor,” transfers rights, property, or other benefits to another known as the “ assignee .” This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights /property/benefits being transferred.

Contract Law

Under contract law, assignment of a contract is both: (1) an assignment of rights; and (2) a delegation of duties , in the absence of evidence otherwise. For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C. That is, this assignment is both: (1) an assignment of A’s rights under the contract to the $50; and (2) a delegation of A’s duty to teach guitar to C. In this example, A is both the “assignor” and the “delegee” who d elegates the duties to another (C), C is known as the “ obligor ” who must perform the obligations to the assignee , and B is the “ assignee ” who is owed duties and is liable to the “ obligor ”.

(1) Assignment of Rights/Duties Under Contract Law

There are a few notable rules regarding assignments under contract law. First, if an individual has not yet secured the contract to perform duties to another, he/she cannot assign his/her future right to an assignee . That is, if A has not yet contracted with B to teach B guitar, A cannot assign his/her rights to C. Second, rights cannot be assigned when they materially change the obligor ’s duty and rights. Third, the obligor can sue the assignee directly if the assignee does not pay him/her. Following the previous example, this means that C ( obligor ) can sue B ( assignee ) if C teaches guitar to B, but B does not pay C $50 in return.

(2) Delegation of Duties

If the promised performance requires a rare genius or skill, then the delegee cannot delegate it to the obligor. It can only be delegated if the promised performance is more commonplace. Further, an obligee can sue if the assignee does not perform. However, the delegee is secondarily liable unless there has been an express release of the delegee. That is, if B does want C to teach guitar but C refuses to, then B can sue C. If C still refuses to perform, then B can compel A to fulfill the duties under secondary liability.

Lastly, a related concept is novation , which is when a new obligor substitutes and releases an old obligor. If novation occurs, then the original obligor’s duties are wiped out. However, novation requires an original obligee’s consent .

Property Law

Under property law, assignment typically arises in landlord-tenant situations. For example, A might be renting from landlord B but wants to another party (C) to take over the property. In this scenario, A might be able to choose between assigning and subleasing the property to C. If assigning , A would be giving C the entire balance of the term, with no reversion to anyone whereas if subleasing , A would be giving C for a limited period of the remaining term. Significantly, under assignment C would have privity of estate with the landlord while under a sublease, C would not.

[Last updated in May of 2020 by the Wex Definitions Team ]

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assignments basic law

Assignments: The Basic Law

The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States.

As with many terms commonly used, people are familiar with the term but often are not aware or fully aware of what the terms entail. The concept of assignment of rights and obligations is one of those simple concepts with wide ranging ramifications in the contractual and business context and the law imposes severe restrictions on the validity and effect of assignment in many instances. Clear contractual provisions concerning assignments and rights should be in every document and structure created and this article will outline why such drafting is essential for the creation of appropriate and effective contracts and structures.

The reader should first read the article on Limited Liability Entities in the United States and Contracts since the information in those articles will be assumed in this article.

Basic Definitions and Concepts:

An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment. The assignment of rights under a contract usually completely transfers the rights to the assignee to receive the benefits accruing under the contract. Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court , 35 Cal. 2d 109, 113-114 (Cal. 1950).

An assignment will generally be permitted under the law unless there is an express prohibition against assignment in the underlying contract or lease. Where assignments are permitted, the assignor need not consult the other party to the contract but may merely assign the rights at that time. However, an assignment cannot have any adverse effect on the duties of the other party to the contract, nor can it diminish the chance of the other party receiving complete performance. The assignor normally remains liable unless there is an agreement to the contrary by the other party to the contract.

The effect of a valid assignment is to remove privity between the assignor and the obligor and create privity between the obligor and the assignee. Privity is usually defined as a direct and immediate contractual relationship. See Merchants case above.

Further, for the assignment to be effective in most jurisdictions, it must occur in the present. One does not normally assign a future right; the assignment vests immediate rights and obligations.

No specific language is required to create an assignment so long as the assignor makes clear his/her intent to assign identified contractual rights to the assignee. Since expensive litigation can erupt from ambiguous or vague language, obtaining the correct verbiage is vital. An agreement must manifest the intent to transfer rights and can either be oral or in writing and the rights assigned must be certain.

Note that an assignment of an interest is the transfer of some identifiable property, claim, or right from the assignor to the assignee. The assignment operates to transfer to the assignee all of the rights, title, or interest of the assignor in the thing assigned. A transfer of all rights, title, and interests conveys everything that the assignor owned in the thing assigned and the assignee stands in the shoes of the assignor. Knott v. McDonald’s Corp ., 985 F. Supp. 1222 (N.D. Cal. 1997)

The parties must intend to effectuate an assignment at the time of the transfer, although no particular language or procedure is necessary. As long ago as the case of National Reserve Co. v. Metropolitan Trust Co ., 17 Cal. 2d 827 (Cal. 1941), the court held that in determining what rights or interests pass under an assignment, the intention of the parties as manifested in the instrument is controlling.

The intent of the parties to an assignment is a question of fact to be derived not only from the instrument executed by the parties but also from the surrounding circumstances. When there is no writing to evidence the intention to transfer some identifiable property, claim, or right, it is necessary to scrutinize the surrounding circumstances and parties’ acts to ascertain their intentions. Strosberg v. Brauvin Realty Servs., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998)

The general rule applicable to assignments of choses in action is that an assignment, unless there is a contract to the contrary, carries with it all securities held by the assignor as collateral to the claim and all rights incidental thereto and vests in the assignee the equitable title to such collateral securities and incidental rights. An unqualified assignment of a contract or chose in action, however, with no indication of the intent of the parties, vests in the assignee the assigned contract or chose and all rights and remedies incidental thereto.

More examples: In Strosberg v. Brauvin Realty Servs ., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998), the court held that the assignee of a party to a subordination agreement is entitled to the benefits and is subject to the burdens of the agreement. In Florida E. C. R. Co. v. Eno , 99 Fla. 887 (Fla. 1930), the court held that the mere assignment of all sums due in and of itself creates no different or other liability of the owner to the assignee than that which existed from the owner to the assignor.

And note that even though an assignment vests in the assignee all rights, remedies, and contingent benefits which are incidental to the thing assigned, those which are personal to the assignor and for his sole benefit are not assigned. Rasp v. Hidden Valley Lake, Inc ., 519 N.E.2d 153, 158 (Ind. Ct. App. 1988). Thus, if the underlying agreement provides that a service can only be provided to X, X cannot assign that right to Y.

Novation Compared to Assignment:

Although the difference between a novation and an assignment may appear narrow, it is an essential one. “Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract. “When a contract is novated, the other contracting party must be left in the same position he was in prior to the novation being made.”

A sublease is the transfer when a tenant retains some right of reentry onto the leased premises. However, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, then the transfer is an assignment. The assignor is normally also removed from liability to the landlord only if the landlord consents or allowed that right in the lease. In a sublease, the original tenant is not released from the obligations of the original lease.

Equitable Assignments:

An equitable assignment is one in which one has a future interest and is not valid at law but valid in a court of equity. In National Bank of Republic v. United Sec. Life Ins. & Trust Co. , 17 App. D.C. 112 (D.C. Cir. 1900), the court held that to constitute an equitable assignment of a chose in action, the following has to occur generally: anything said written or done, in pursuance of an agreement and for valuable consideration, or in consideration of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it to or in favor of another person, amounts to an equitable assignment. Thus, an agreement, between a debtor and a creditor, that the debt shall be paid out of a specific fund going to the debtor may operate as an equitable assignment.

In Egyptian Navigation Co. v. Baker Invs. Corp. , 2008 U.S. Dist. LEXIS 30804 (S.D.N.Y. Apr. 14, 2008), the court stated that an equitable assignment occurs under English law when an assignor, with an intent to transfer his/her right to a chose in action, informs the assignee about the right so transferred.

An executory agreement or a declaration of trust are also equitable assignments if unenforceable as assignments by a court of law but enforceable by a court of equity exercising sound discretion according to the circumstances of the case. Since California combines courts of equity and courts of law, the same court would hear arguments as to whether an equitable assignment had occurred. Quite often, such relief is granted to avoid fraud or unjust enrichment.

Note that obtaining an assignment through fraudulent means invalidates the assignment. Fraud destroys the validity of everything into which it enters. It vitiates the most solemn contracts, documents, and even judgments. Walker v. Rich , 79 Cal. App. 139 (Cal. App. 1926). If an assignment is made with the fraudulent intent to delay, hinder, and defraud creditors, then it is void as fraudulent in fact. See our article on Transfers to Defraud Creditors .

But note that the motives that prompted an assignor to make the transfer will be considered as immaterial and will constitute no defense to an action by the assignee, if an assignment is considered as valid in all other respects.

Enforceability of Assignments:

Whether a right under a contract is capable of being transferred is determined by the law of the place where the contract was entered into. The validity and effect of an assignment is determined by the law of the place of assignment. The validity of an assignment of a contractual right is governed by the law of the state with the most significant relationship to the assignment and the parties.

In some jurisdictions, the traditional conflict of laws rules governing assignments has been rejected and the law of the place having the most significant contacts with the assignment applies. In Downs v. American Mut. Liability Ins. Co ., 14 N.Y.2d 266 (N.Y. 1964), a wife and her husband separated and the wife obtained a judgment of separation from the husband in New York. The judgment required the husband to pay a certain yearly sum to the wife. The husband assigned 50 percent of his future salary, wages, and earnings to the wife. The agreement authorized the employer to make such payments to the wife.

After the husband moved from New York, the wife learned that he was employed by an employer in Massachusetts. She sent the proper notice and demanded payment under the agreement. The employer refused and the wife brought an action for enforcement. The court observed that Massachusetts did not prohibit assignment of the husband’s wages. Moreover, Massachusetts law was not controlling because New York had the most significant relationship with the assignment. Therefore, the court ruled in favor of the wife.

Therefore, the validity of an assignment is determined by looking to the law of the forum with the most significant relationship to the assignment itself. To determine the applicable law of assignments, the court must look to the law of the state which is most significantly related to the principal issue before it.

Assignment of Contractual Rights:

Generally, the law allows the assignment of a contractual right unless the substitution of rights would materially change the duty of the obligor, materially increase the burden or risk imposed on the obligor by the contract, materially impair the chance of obtaining return performance, or materially reduce the value of the performance to the obligor. Restat 2d of Contracts, § 317(2)(a). This presumes that the underlying agreement is silent on the right to assign.

If the contract specifically precludes assignment, the contractual right is not assignable. Whether a contract is assignable is a matter of contractual intent and one must look to the language used by the parties to discern that intent.

In the absence of an express provision to the contrary, the rights and duties under a bilateral executory contract that does not involve personal skill, trust, or confidence may be assigned without the consent of the other party. But note that an assignment is invalid if it would materially alter the other party’s duties and responsibilities. Once an assignment is effective, the assignee stands in the shoes of the assignor and assumes all of assignor’s rights. Hence, after a valid assignment, the assignor’s right to performance is extinguished, transferred to assignee, and the assignee possesses the same rights, benefits, and remedies assignor once possessed. Robert Lamb Hart Planners & Architects v. Evergreen, Ltd. , 787 F. Supp. 753 (S.D. Ohio 1992).

On the other hand, an assignee’s right against the obligor is subject to “all of the limitations of the assignor’s right, all defenses thereto, and all set-offs and counterclaims which would have been available against the assignor had there been no assignment, provided that these defenses and set-offs are based on facts existing at the time of the assignment.” See Robert Lamb , case, above.

The power of the contract to restrict assignment is broad. Usually, contractual provisions that restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment. The restriction of the power to assign is often ineffective unless the restriction is expressly and precisely stated. Anti-assignment clauses are effective only if they contain clear, unambiguous language of prohibition. Anti-assignment clauses protect only the obligor and do not affect the transaction between the assignee and assignor.

Usually, a prohibition against the assignment of a contract does not prevent an assignment of the right to receive payments due, unless circumstances indicate the contrary. Moreover, the contracting parties cannot, by a mere non-assignment provision, prevent the effectual alienation of the right to money which becomes due under the contract.

A contract provision prohibiting or restricting an assignment may be waived, or a party may so act as to be estopped from objecting to the assignment, such as by effectively ratifying the assignment. The power to void an assignment made in violation of an anti-assignment clause may be waived either before or after the assignment. See our article on Contracts.

Noncompete Clauses and Assignments:

Of critical import to most buyers of businesses is the ability to ensure that key employees of the business being purchased cannot start a competing company. Some states strictly limit such clauses, some do allow them. California does restrict noncompete clauses, only allowing them under certain circumstances. A common question in those states that do allow them is whether such rights can be assigned to a new party, such as the buyer of the buyer.

A covenant not to compete, also called a non-competitive clause, is a formal agreement prohibiting one party from performing similar work or business within a designated area for a specified amount of time. This type of clause is generally included in contracts between employer and employee and contracts between buyer and seller of a business.

Many workers sign a covenant not to compete as part of the paperwork required for employment. It may be a separate document similar to a non-disclosure agreement, or buried within a number of other clauses in a contract. A covenant not to compete is generally legal and enforceable, although there are some exceptions and restrictions.

Whenever a company recruits skilled employees, it invests a significant amount of time and training. For example, it often takes years before a research chemist or a design engineer develops a workable knowledge of a company’s product line, including trade secrets and highly sensitive information. Once an employee gains this knowledge and experience, however, all sorts of things can happen. The employee could work for the company until retirement, accept a better offer from a competing company or start up his or her own business.

A covenant not to compete may cover a number of potential issues between employers and former employees. Many companies spend years developing a local base of customers or clients. It is important that this customer base not fall into the hands of local competitors. When an employee signs a covenant not to compete, he or she usually agrees not to use insider knowledge of the company’s customer base to disadvantage the company. The covenant not to compete often defines a broad geographical area considered off-limits to former employees, possibly tens or hundreds of miles.

Another area of concern covered by a covenant not to compete is a potential ‘brain drain’. Some high-level former employees may seek to recruit others from the same company to create new competition. Retention of employees, especially those with unique skills or proprietary knowledge, is vital for most companies, so a covenant not to compete may spell out definite restrictions on the hiring or recruiting of employees.

A covenant not to compete may also define a specific amount of time before a former employee can seek employment in a similar field. Many companies offer a substantial severance package to make sure former employees are financially solvent until the terms of the covenant not to compete have been met.

Because the use of a covenant not to compete can be controversial, a handful of states, including California, have largely banned this type of contractual language. The legal enforcement of these agreements falls on individual states, and many have sided with the employee during arbitration or litigation. A covenant not to compete must be reasonable and specific, with defined time periods and coverage areas. If the agreement gives the company too much power over former employees or is ambiguous, state courts may declare it to be overbroad and therefore unenforceable. In such case, the employee would be free to pursue any employment opportunity, including working for a direct competitor or starting up a new company of his or her own.

It has been held that an employee’s covenant not to compete is assignable where one business is transferred to another, that a merger does not constitute an assignment of a covenant not to compete, and that a covenant not to compete is enforceable by a successor to the employer where the assignment does not create an added burden of employment or other disadvantage to the employee. However, in some states such as Hawaii, it has also been held that a covenant not to compete is not assignable and under various statutes for various reasons that such covenants are not enforceable against an employee by a successor to the employer. Hawaii v. Gannett Pac. Corp. , 99 F. Supp. 2d 1241 (D. Haw. 1999)

It is vital to obtain the relevant law of the applicable state before drafting or attempting to enforce assignment rights in this particular area.

Conclusion:

In the current business world of fast changing structures, agreements, employees and projects, the ability to assign rights and obligations is essential to allow flexibility and adjustment to new situations. Conversely, the ability to hold a contracting party into the deal may be essential for the future of a party. Thus, the law of assignments and the restriction on same is a critical aspect of every agreement and every structure. This basic provision is often glanced at by the contracting parties, or scribbled into the deal at the last minute but can easily become the most vital part of the transaction.

As an example, one client of ours came into the office outraged that his co venturer on a sizable exporting agreement, who had excellent connections in Brazil, had elected to pursue another venture instead and assigned the agreement to a party unknown to our client and without the business contacts our client considered vital. When we examined the handwritten agreement our client had drafted in a restaurant in Sao Paolo, we discovered there was no restriction on assignment whatsoever…our client had not even considered that right when drafting the agreement after a full day of work.

One choses who one does business with carefully…to ensure that one’s choice remains the party on the other side of the contract, one must master the ability to negotiate proper assignment provisions.

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What is an Assignment of Debt?

By Sej Lamba

Updated on 26 February 2024 Reading time: 5 minutes

When Could an Assignment of Debt Happen?

Key issues on assignment of debt, drafting the correct documentation, giving notice, key takeaways.

Debts are increasingly common in today’s financial climate, and unfortunately, many people struggle to repay what they owe. Debts owed can be sold to third parties and a lot of companies in the UK purchase debts. However, this can be complicated as specific legal formalities apply when assigning debts. This article will explain some of the critical issues around the assignment of debt.

Debt collection can be a complex process. There are various reasons as to why debt is assigned. For example, a company owed debt may want to avoid putting in time and effort to chase it or want to take legal action to recover it.

To picture a scenario, imagine this:

Joe Bloggs gets a brand-new shiny credit card. Joe purchases lots of nice things for his family with the credit card. Usually, he can keep up with payments as he keeps track of them and earns enough to pay them back;
suddenly, Joe has an injury and cannot work anymore. He has to give up his job and now can’t afford to pay the credit card company back;
Joe ignores various letters chasing the debt and hopes the problem will disappear. Ultimately, after months, the credit card company gives up and sells Joe’s debt to a debt collection agency.

So, in summary – after the debt sale, Joe now owes money to a different company.

In practice, debt assignments can be complex, and the parties must follow the relevant legal rules and draft the correct documentation.

An assignment of debt essentially transfers the debt from one party (the assignor) to a third party (an assignee).

In practice, this will mean the original debtor (e.g. Joe Bloggs) will now owe the debt to a new third-party creditor (e.g. the debt collection business). Therefore, in the scenario above, Joe must now repay the debt to the third-party debt collection business.

This process can be complex. There have been several legal cases in the courts where this process has given rise to disputes.

There are two different types of assignment of debt – a legal assignment of debt and an equitable assignment of debt.

In simple terms:

a legal assignment of debt will transfer the right for enforcement of the debt; and
an equitable assignment of debt will transfer only the benefit of the debt without the right to enforce it.

Let us explore each type below.

Legal Assignment of Debt

If the assignment complies with specific legal requirements under the Law of Property Act 1925, it will be a ‘legal assignment’. This means that the assignee will be the new owner of the debt.

A legal assignment requires various formalities to be effective. For example, it must:

be in writing and signed by the assignor;
the debtor must be given written notice of the assignment;
be absolute with no conditions attached to it;
relate to the whole of the debt and not just part of it; and
not be a charge.

After the transfer of the debt, the assignor can sue the debtor in its own name.

Equitable Assignment of Debt

It is also possible to have an equitable debt transfer – the requirements for this are much less strict. For example, this can be done informally by the assignor informing the assignee that the rights are transferred to them.

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For an equitable assignment, giving notice is not essential, but still always highly advisable.

Where an equitable assignment is made, the assignee won’t have the right to pursue court action for the debt. In this case, the assignee will have to join forces with the assignor to sue for the debt to sue for the debt.

The debtor should receive notice of any debt transfer so they know to whom the money is owed. Following notice, the new debt owner can pursue the debt owed.

A legal assignment is the best option for an assignee of debt – this will give them full rights to enforce the debt.

Assignments of debts can be very complex. For a legal assignment of debt, you need to follow various formalities. Otherwise, it may be unenforceable and lead to disputes. If you need help executing a debt assignment correctly, you should seek legal advice from an experienced lawyer.

If you need help with an assignment of debt, LegalVision’s experienced business lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 0808 196 8584 or visit our membership page .

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Assignment Involves Transfer of Rights to Collect Outstanding Debts

What is an assignment of debt, an assignment of debt occurs when a creditor, being a person owed money, transfers the right to collect the debt to another person who then becomes the creditor., understanding what constitutes as a legally binding assignment of creditor rights to collect a debt.

Right to Collect on Debts

In Ontario, the Court of Appeal case of Clark v. Werden , 2011 ONCA 619 confirmed the right to assign debts per the Conveyancing and Law of Property Act , R.S.O. 1990, c. C.34 , whereas such statute prescribes the conditions and requirements for the transfer of rights involving monies, among other things, whereas it was said:

Clark v. Werden , 2011 ONCA 619 at paragraph 13

[13] The ability to assign a debt or legal chose in action is codified in s. 53 of the Conveyancing and Law of Property Act , which provides that a debt is assignable subject to the equities between the original debtor and creditor and reads as follows:

53 (1) Any absolute assignment made on or after the 31st day of December, 1897, by writing under the hand of the assignor, not purporting to be by way of charge only, of any debt or other legal chose in action of which express notice in writing has been given to the debtor, trustee or other person from whom the assignor would have been entitled to receive or claim such debt or chose in action is effectual in law, subject to all equities that would have been entitled to priority over the right of the assignee if this section had not been enacted, to pass and transfer the legal right to such debt or chose in action from the date of such notice, and all legal and other remedies for the same, and the power to give a good discharge for the same without the concurrence of the assignor.

Partially Assigned

Interestingly, it should be noted that the statute law refers to an " absolute assignment "; however, such reference is made without fully defining the rights and duties of creditors and assignees in regards to concerns for the partial assignment of a debt. However, in such circumstances as where a partial assignment of debt occurs, and therefore where there is more one assignee who assumes various rights of the original creditor, the assignee must include all assignees, or the original creditor if the original creditor retained a portion of the debt, when legal action is brought against debtor. This requirement was stated by the Court of Appeal within the case of DiGuilo v. Boland , 1958 CanLII 92 wherein it was stated:

DiGuilo v. Boland , 1958 CanLII 92

The main reason why an assignee of a part of a debt is required to join all parties interested in the debt in an action to recover the part assigned to him is in my opinion because the Court cannot adjudicate completely and finally without having such parties before it. The absence of such parties might result in the debtor being subjected to future actions in respect of the same debt, and moreover might result in conflicting decisions being arrived at concerning such debt.

Failed Notice

Of potentially grave concern to creditors, and potentially with great relief to debtors, for an assignee to retain the right to pursue the debtor, express written notice of the assignment is required. This requirement was stated in 1124980 Ontario Inc. v. Liberty Mutual Insurance Company and Inco Ltd. , 2003 CanLII 45266 as part of the four part test to establish the right to pursue an assigned debt:

1124980 Ontario Inc. v. Liberty Mutual , 2003 CanLII 45266 at paragraph 44

[44] Accordingly, for there to be a valid legal assignment under section 53(1) of the CLPA , four requirements must be met:

a) there must be debt or chose in action;

b) the assignment must be absolute;

c) the assignment must be written; and

d) written notice of the assignment must be given to the debtor.

Where there is a failure of notice, and therefore failure to comply with the Conveyancing and Law of Property Act , it is said that the right to assign fails in law; however, relief in equity, via an equitable assignment may be available to an assignee affected by failure of notice. Generally, in equity, when failure of notice occurs, the assignee is unable, in law, to bring an action in the name of the assignee and may do so only in the name of the creditor; however, even in the absence of proper notice as results in failure of assignment in law, and failure ot enjoin the creditor in an action pursued as an equitable assignment, the court may remain prepared to waive such a requirement whereas such occurred in the matter of Landmark Vehicle Leasing Corporation v. Mister Twister Inc. , 2015 ONCA 545 wherein it was stated:

Landmark v. Mister Twister , 2015 ONCA 545 at paragraphs 10 to 16

[10] Section 53(1) requires “ express notice in writing ” to the debtor. Although there is some ambiguity in her reasons, it would appear that the trial judge found that Mr. Blazys had express notice of the assignment, but not notice in writing. Ross Wemp Leasing therefore did not assign the leases to Landmark in law: see 80 Mornelle Properties Inc. v. Malla Properties Ltd. , 2010 ONCA 850 (CanLII) , 327 D.L.R. (4th) 361, at para. 22 . Ross Wemp Leasing did, however, assign the leases to Landmark in equity. An equitable assignment does not require any notice, let alone written notice: Bercovitz Estate v. Avigdor , [1961] O.J. No. 20 (C.A.), at paras. 16, 25.

[11] The appellants, relying on DiGuilo v. Boland , 1958 CanLII 92 (ON CA), [1958] O.R. 384 (C.A.), aff’d, [1961] S.C.C.A. vii, argue that as the appellants did not have written notice of the assignment, Landmark could not sue on its own. Instead, Landmark had to join Ross Wemp Leasing in the action. The appellants argue that the failure to join Ross Wemp Leasing requires that the judgment below be set aside.

[12] DiGuilo does in fact require that the assignor of a chose in action be joined in the assignee’s claim against the debtor when the debtor has not received written notice of the assignment. The holding in DiGuilo tracks rule 5.03(3) of the Rules of Civil Procedure , R.R.O. 1990, Reg. 194 : In a proceeding by the assignee of a debt or other chose in action, the assignor shall be joined as a party unless,

(a) the assignment is absolute and not by way of charge only; and

(b) notice in writing has been given to the person liable in respect of the debt or chose in action that it has been assigned to the assignee. [Emphasis added.]

[13] Yet the assignee’s failure to join the assignor does not affect the validity of the assignment or necessarily vitiate a judgment obtained by the assignee against the debtor. Rule 5.03(6) reads:

The court may by order relieve against the requirement of joinder under this rule.

[14] The joinder requirement is intended to guard the debtor against a possible second action by the assignor and to permit the debtor to pursue any remedies it may have against the assignor without initiating another action: DiGuilo , at p. 395. Where the assignee’s failure to join the assignor does not prejudice the debtor, the court may grant the relief in rule 5.03(6) : see Gentra Canada Investments Inc. v. Lipson , 2011 ONCA 331 (CanLII), 106 O.R. (3d) 261, at paras. 59 - 65 , leave to appeal refused, [2011] S.C.C.A. No. 327.

[15] In this case, the trial judge found that Mr. Blazys, and effectively all of the appellants, gained actual notice of the lease assignments very shortly after the assignments were made and well before Landmark sued. Armed with actual, albeit not written, notice of the assignment, the appellants could fully protect themselves against any prejudice from Landmark’s failure to join Ross Wemp Leasing. Had the appellants seen any advantage in joining Ross Wemp Leasing, either to defend against Landmark’s claim or to advance a claim against Ross Wemp Leasing, the appellants could have moved for joinder under rule 5.03(4). The appellants’ failure to bring a motion to add Ross Wemp Leasing speaks loudly to the absence of any prejudice caused by Landmark’s failure to join the assignor.

[16] Ross Wemp Leasing perhaps should have been a party to the proceeding. Landmark’s failure to join Ross Wemp Leasing, however, did not prejudice the appellants and should have had no impact on the trial judgment. If requested, this court will make a nunc pro tunc order relieving Landmark from the requirement of joining Ross Wemp Leasing in the action.

Summary Comment

The rights to collect on a debt can be sold and transferred from the original creditor to a substitute creditor or assignee who then takes on the rights of the original creditor. Indeed, the selling and buying of individual debts, or debts within an entire portfolio debts is common within business. The entire collection services industry is based on the concept of buying outstanding debt and then standing in the shoes of the original creditor and pursuing the payment of the debt. Other forms of buying and selling debt includes mortgage swaps, among other things.

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Assignment of Debt – What You Need to Know

By aqila zulaiqha zulkifli ~ 23 june 2023.

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Occasionally, to ensure liquidity and to reduce financial risk, a creditor may assign its rights to a debt repayment to another party. Such an arrangement is known as the assignment of debt.

An assignment generally means the transfer of contractual rights and liabilities to a third party without the concurrence of the other party to the contract. [1] The assigning party is known as the assignor, whereas the recipient party is known as the assignee.

Once an assignment occurs, the assignee stands in the exact position as the assignor and has the legal right to a debt, other remedies therein, and even the power to discharge the debt. The debtor must then, make all payments to the assignee, and not the assignor. In fact, if the debtor pays the assignor without the consent of the assignee, the debtor may risk having to pay the assignee all over again. [2]

An assignment of debt is governed by Section 4(3) of the Civil Law Act 1956 (the “Act”) (cited with approval in the Federal Court case of UMW Industries Sdn Bhd v Ah Fook [3] , in which, the elements of a statutory assignment of debt can be summarized as follows:

the assignment must be in writing under the hand of the assignor (and not, i.e the agent of the assignor);
the assignment must be absolute and not by way of charge only; and
the express notice in writing must have been given to the person liable to the assignor (i.e the debtor).

The effect of a statutory assignment is that the assignee possesses the legal right to the debt and the right to sue the debtor in respect of the debt without needing to join the assignor. [4]

However, rest assured, an assignment that is not in compliance with Section 4(3) of the Act is not automatically invalid. A non-statutory assignment could still be valid in equity [5] , though the assignee would have to join the assignor in the proceeding, either as a plaintiff or defendant [6] . This is to ensure a just disposal of the action, by ensuring that all relevant parties are before the Court so that the assignor would not make a claim against the debtor in respect of the same debt.

As such, in conclusion, before accepting an assignment of debt, it is prudent for an assignee to ensure that the elements in Section 4(3) of the Act abovementioned are fulfilled. If the assignment is meant to be absolute, such terms should be clearly reflected in the deed of assignment, or the assignee runs the risk of being crippled in a legal proceeding to recover the debt in the absence of the assignor.

[1] United General Insurance Co Sdn Bhd v Progress Credit Sdn Bhd [1988] 2 MLJ 297

[2] malayawata steel berhad v government of malaysia & anor [1980] 2 mlj 103, [3] [1996] 1 mlj 365, [4] mbf factors sdn bhd v tay hing ju (t/a new general trading) [2002] 5 mlj 536, [5] khaw poh chhuan v ng gaik peng & ors [1996] 1 mlj 761 (fc), [6] chan min swee v melawangi sdn bhd [2000] 7 clj 1.

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Practical Law

Legal assignment

Practical law uk glossary 9-107-6754 (approx. 3 pages).

Only the benefit of an agreement may be assigned.
The assignment must be absolute.
The rights to be assigned must be wholly ascertainable and must not relate to part only of a debt.
The assignment must be in writing and signed under hand by the assignor.
Notice of the assignment must be received by the other party or parties for the assignment to take effect.
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Factoring and Set off Rights – Some Practical Tips

Factoring is a widely used mechanism in the business world. This article discusses the law in relation to factoring and practical tips to be adopted by companies when it comes to factoring and set off rights.

What is factoring?

Factoring is a form of financing by which a company sells debts that are due to be collected from a customer to a third party (the Factor) at a discounted price, and in turn assigns its rights to collect the debts from the customer or customers to the Factor.

After the factoring arrangement is entered into between the company and the Factor, it is the usual practice for the Factor to send out to the relevant customers a letter giving notice that from the date of the letter and until further notice, all debts owed by the customers to the company are automatically assigned and become payable to the Factor. This letter is usually known as an introductory letter.

Law on factoring and its effect on set off rights

Under Hong Kong law, the assignment of debts is governed by both statute and common law principles. Section 9 of the Law Amendment and Reform (Consolidation) Ordinance (Cap. 23) (the Ordinance) provides that:-

“ Any absolute assignment, by writing under the hand of the assignor (not purporting to be by way of charge only), of any debt or other legal chose in action, of which express notice in writing has been given to the debtor, trustee or other person from whom the assignor would have been entitled to receive or claim such debt or chose in action, shall be and be deemed to have been effectual in law (subject to all equities which would have been entitled to priority over the right of the assignee…) to pass and transfer the legal right to such debt or chose in action from the date of such notice, and all legal and other remedies for the same, and the power to give a good discharge for the same, without the concurrence of the assignor .”

This means that when a customer receives (and/or acknowledges) a written notice of assignment (including an introductory letter) from the Factor, the assignment of debt to the Factor becomes effective in law.

Section 9 of the Ordinance provides that the Factor takes the assignment of debt subject to all equities which would have been entitled to priority over the rights of the Factor. Cases have interpreted this wording to mean that:-

(a) the Factor takes subject to the customer’s right of set off against the assignor; but

(b) if the set off does not arise out of or is not closely connected with the same contract or the subject-matter of the assignment, the customer can only claim a set off against the Factor if the right of set off arose before the notice of assignment is given.

Where there is a prior contractual set off agreement in place between the company and the customer, the law is not as clear cut when it comes to deciding whether such an agreement will also be effective against the Factor where the transaction out of which the cross-claim sought to be set off arose was entered into after the notice of assignment is given. There are two competing views arising from the case law on this issue:-

(a) One view is that the assignee (i.e. the Factor) takes the same interest and is subject to the same liabilities as the assignor (i.e. the company) at the date of the notice of assignment, and the prior agreement will allow the debtor (i.e. the customer) to set off cross-claims, both present and future, including claims which arise out of new transactions.

(b) The competing view is that when the debtor receives notice, the debtor should regulate its conduct accordingly and should not rely on debts arising out of new transactions to diminish the rights of the assignee as they stood at the time of notice: in other words, set off is not available in respect of new transactions.

A set-off agreement entered into by the company and customer after the customer has notice of the assignment will not ordinarily be effective as against the Factor.

In summary, set off rights will continue to apply after assignment where:

(a) the relevant cross-claim arose before the assignment;

(b) the relevant cross-claim arose out of the same contract or is closely connected with it;

(c) the factor expressly (or, depending on the facts, by implication) agrees to the continuation of a contractual set off right.

Practical Tips

Below are various measures which can be taken by a company to strengthen its position when it comes to factoring and set off rights:-

It is prudent for a company to include a clause in their terms and conditions with the supplier providing that the set off rights which the company has under the contract will continue to be enforceable against the supplier and their assignees regardless of (a) any existing or future agreements entered into between the supplier and a third party assigning the right to the third party to collect its receivables or (b) any future notice of assignment of debt which may be received by the company in relation to the supplier’s debt. Again, it is also prudent to get an acknowledgement from the Factor and the supplier that they will adhere to these terms.
Set up measures to ensure that Factors are kept up to date with the set off arrangements which the company has in place with their customers e.g. by periodically sending letters to Factors (especially if the Factor is involved in a long term trading relationship) reminding them that the company’s set off rights against the customer and Factor will continue to apply to future assigned debts of the customer; and
In the event the company’s right to set off crystallises (e.g. default by the supplier), the company should put the supplier and Factor on immediate notice that the company will exercise their set off rights against any assigned debts which are the subject of any existing or future invoices which may be issued by the supplier.

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Debt Assignment of Debt

Whether the assignment under section 5 of sarfaesi act, 2002 excludes assignment of liability | whether enforceability of an assignment depends on adequacy of stamp duty – cfm asset reconstruction pvt. ltd. – nclt kolkata bench.

Hon’ble NCLT Kolkata Bench held that:

(i) Validity of an assignment on the basis of adequacy or inadequacy of the stamp duty etc., cannot be gone into in a summary proceeding as the present one. (ii) SARFAESI Act, 2002 does not specifically contemplate the assignment of a liability to an assignee. It is explicit that the statute permits only the assets to be assigned and not the liability, and the statute book does not provide for the assignment of liability or obligation. (iii) Section 5(3) of the SARFEASI Act, 2002 and Section 5(4) of the Act, 2002 and held that the liabilities of the Assignor in regard to the very same assets in question would remain protected to such extent, as envisaged under the provisions Sections 5(3) and 5(4) of the SARFAESI Act, 2002, as it appears that the provisions will squarely apply to the present case.

Whether the assignment under Section 5 of SARFAESI Act, 2002 excludes assignment of liability | Whether enforceability of an assignment depends on adequacy of stamp duty – CFM Asset Reconstruction Pvt. Ltd. – NCLT Kolkata Bench Read Post »

In case of assignment of the debt during the course of pendency of CIRP petition, Assignee is entitled to all rights exercisable under the IBC and enjoys the locus to file the restoration application before the Adjudicating Authority – Raj Radhe Finance Ltd. Vs. Shrinathji Spintx Pvt. Ltd. and Anr. – NCLAT New Delhi

Hon’ble NCLAT held that when NCLT Rule 2(4) defines “applicant” to mean a petitioner or an appellant or any other person or entity capable of making an application including an interlocutory application or a petition or an appeal under the IBC. Tested against this definition of an “applicant”, let us now see whether the Appellant fits into this definition of an “applicant”. An Appellant who by virtue of an assignment agreement has already stepped into the shoes of the original petitioner.

In case of assignment of the debt during the course of pendency of CIRP petition, Assignee is entitled to all rights exercisable under the IBC and enjoys the locus to file the restoration application before the Adjudicating Authority – Raj Radhe Finance Ltd. Vs. Shrinathji Spintx Pvt. Ltd. and Anr. – NCLAT New Delhi Read Post »

CFM Asset Reconstruction Pvt. Ltd. – NCLT Kolkata Bench

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CFM Asset Reconstruction Pvt. Ltd. – NCLT Kolkata Bench Read Post »

Assignment of loan to a new Entity by the Lender/Bank need not be on an express consent of the borrower, the Court would not sit as a supervisor to Banking Activities between the Lender and the Borrower except in cases where the dispute between the Banker and the Lender would touch upon violation of any statutory provision – Gstaad Hotels Pvt. Ltd. Vs. Union of India and Ors. – Karnataka High Court

Hon’ble High Court held that: (i) The underlying principle is that the assignment of asset to a new entity by the lender need not be on an express consent of the borrower. Knowledge to the borrower would be suffice and knowledge to the petitioner in the case at hand cannot be disputed. (ii) Assignment or re-assignment by private entities or in the business of banking is best left to bankers, borrowers and the lenders unless it runs contrary to any statutory provision either under the SARFAESI Act or Circulars issued by the Reserve Bank of India which are held to have statutory force. (iii) Banking business is better left to bankers. This Court would not sit as a supervisor to banking activities between the lender and the borrower except in cases where the dispute between the banker and the lender would touch upon violation of any statutory provision. No such violation though projected with all vehemence is found in the case at hand. Therefore, I decline to grant any of the prayers sought by the petitioner noticed supra. It is for the petitioner to avail all such remedies as are available in law.

Assignment of loan to a new Entity by the Lender/Bank need not be on an express consent of the borrower, the Court would not sit as a supervisor to Banking Activities between the Lender and the Borrower except in cases where the dispute between the Banker and the Lender would touch upon violation of any statutory provision – Gstaad Hotels Pvt. Ltd. Vs. Union of India and Ors. – Karnataka High Court Read Post »

Whether transfer of loan account by a Bank/Financial Institution to an Asset Reconstruction Company (ARC) would amount to “conveyance” as defined in Sec. 2(d) of the Kerala Stamp Act, 1959 – Abdul Azeez Vs. The Authorized Officer, Phoenix ARC. Ltd. and Anr. – Kerala High Court

Hon’ble Kerala High Court holds that: (i) What is transferred by a Bank / financial institution to an Asset Reconstruction Company is only a transfer of economic interest and there is no conveyance of property or proprietary rights. The transfer of legal ownership of the loan is limited to the extent to the economic interest transferred. (ii) Article 22 of the Kerala Stamp Act, 1959 takes within its ambit only those conveyances as defined in Section 2(d). Even assuming that transfer of loan interest by a financial institution involves transfer of any interest in the secured asset and therefore it amounts to conveyance, even then such conveyance will not fall in any of the categories mentioned in Article 22. (iii) The NCLT has taken a contrary view in CP(IBC)/08/KOB/2023 wherein the Tribunal has held that the assignment deed in favour of the Asset Reconstruction Company is not a conveyance relating to immovable property.

Whether transfer of loan account by a Bank/Financial Institution to an Asset Reconstruction Company (ARC) would amount to “conveyance” as defined in Sec. 2(d) of the Kerala Stamp Act, 1959 – Abdul Azeez Vs. The Authorized Officer, Phoenix ARC. Ltd. and Anr. – Kerala High Court Read Post »

Debt Assignment Deed cannot be challenged in petition under Sec. 7 of IBC | Proceedings under IBC are summary proceedings and it is beyond the ambit of Adjudicating Authority to delve into the details regarding the requirement or exemption of registration of Assignment Agreement – CFM Asset Reconstruction Pvt. Ltd. Vs. M.G. Finvest Pvt. Ltd. – NCLT New Delhi Bench

In this important judgment, NCLT New Delhi Bench holds that: (i) The assignment of debt essentially being a transaction between the Creditor and the Assignee and assignment being recognized by the Code, 2016 as a valid mode of transfer of rights across the ambit of Section 5(7) of the Code, therefore, the entity who received the said assignment of debt falls within the fold of “Financial Creditor‟. (ii) In Palm Products Pvt. Ltd. Vs T.V.L. Narsimha Rao & Anr. (2021) ibclaw.in 115 NCLAT, the issue is with regard to admission of claim by the RP not for admission of an application filed under Sec 7 of the Code, 2016. (iii) Proceedings under Insolvency and Bankruptcy Code, 2016 are summary proceedings and it is beyond the ambit of this Adjudicating authority to delve into the details regarding the requirement or exemption of registration of the Assignment Agreement dated 18.01.2021. Therefore, the assignment agreement cannot be challenged in the petition under Section 7 of the Code, 2016. (iv) Further, the assignment does not affect the liability and obligations of the Corporate Debtor to discharge the debt.

Debt Assignment Deed cannot be challenged in petition under Sec. 7 of IBC | Proceedings under IBC are summary proceedings and it is beyond the ambit of Adjudicating Authority to delve into the details regarding the requirement or exemption of registration of Assignment Agreement – CFM Asset Reconstruction Pvt. Ltd. Vs. M.G. Finvest Pvt. Ltd. – NCLT New Delhi Bench Read Post »

SREI Equipment Finance Ltd. Vs. Uday Narayan Mitra IRP of ARSS Infrastructure Projects Ltd. – NCLAT New Delhi

SREI Equipment Finance Ltd. Vs. Uday Narayan Mitra IRP of ARSS Infrastructure Projects Ltd. – NCLAT New Delhi Read Post »

Trade receivables discounted on non-recourse basis and liability arose to Corporate Debtor to pay Financers, Financers stepped into the shoes of Suppliers | When Section (5)(8)(e) specifically covers receivables sold or discounted, the discounting of invoices cannot be covered by any other clause such as Section 5(8)(f) – Mudraksh Investfin Pvt. Ltd. Vs. Brijesh Singh Bhaduriya, RP of RCI Industries and Technologies Ltd. – NCLAT New Delhi

Hon’ble NCLAT holds that: (i) Supplier has sold goods to the Corporate Debtor against which invoices were raised by the Supplier against the Buyer. The said invoices were discounted by the Financer from time to time and Corporate Debtor was liable to make payment to the Financer along with interest. The Financers have made payment to the Suppliers. The Corporate Debtor could not make the payment to the Financers. (ii) The original transaction between the parties were for the sale and purchase of goods. (iii) Discounting was without any recourse basis. Thus, the discounting is clearly excluded from financial debt under Section 5, sub-section (8) (e). (iv) When Section 5, sub-section (8) (e) specifically covers receivables sold or discounted, the discounting of invoices cannot be covered by any other clause. Hence, discounting of invoices cannot fall under Section 5, sub-section (8) (f). (v) The transaction emanates from sale and purchase of goods in the present case. No disbursement was made to the Corporate Debtor, hence, the transactions cannot be held to be a financial debt.

Trade receivables discounted on non-recourse basis and liability arose to Corporate Debtor to pay Financers, Financers stepped into the shoes of Suppliers | When Section (5)(8)(e) specifically covers receivables sold or discounted, the discounting of invoices cannot be covered by any other clause such as Section 5(8)(f) – Mudraksh Investfin Pvt. Ltd. Vs. Brijesh Singh Bhaduriya, RP of RCI Industries and Technologies Ltd. – NCLAT New Delhi Read Post »

High Court has no territorial jurisdiction to entertain prayers with respect to debt assignment deed which is a subject matter of proceedings before NCLT/NCLAT | Jurisdiction vested in NCLT while dealing with a resolution plan is of wide ambit and any question of law or fact in relation to insolvency resolution has to be determined by NCLT – Tejinder Pal Setia v. Kone Elevators India Pvt. Ltd. and Anr. – Delhi High Court

Hon’ble Delhi High Court held that: (i) As such, this Court has no territorial jurisdiction to entertain the prayers of the plaintiff with respect to the assignment deed dated 03.02.2023, which is the fulcrum of the present suit. (ii) Sections 63 and 231 IBC create a bar on the jurisdiction of the civil court in respect of any matter in which the NCLT and NCLAT has jurisdiction under the IBC and the adjudicating authority under the Code is competent to pass any order. (iii) The jurisdiction vested in NCLT while dealing with a resolution plan is of wide ambit and any question of law or fact in relation to the insolvency resolution has to be determined by the NCLT.

High Court has no territorial jurisdiction to entertain prayers with respect to debt assignment deed which is a subject matter of proceedings before NCLT/NCLAT | Jurisdiction vested in NCLT while dealing with a resolution plan is of wide ambit and any question of law or fact in relation to insolvency resolution has to be determined by NCLT – Tejinder Pal Setia v. Kone Elevators India Pvt. Ltd. and Anr. – Delhi High Court Read Post »

Whether the amalgamation between a Sole Proprietorship Firm and a Company is valid in the eyes of the law or not? – SVS Marketing Sanitaryware Pvt. Ltd. v. Kajaria Bathware Pvt. Ltd. – NCLT New Delhi Bench Court-II

NCLT New Delhi Bench Court-II held that: (i) Both/or all the entities involved in the Amalgamation Scheme under Section 230-232 of the Companies Act 2013 have to be necessarily “Companies” as defined under Section 2(20) of the Companies Act 2013. In the instant case, the applicant has merged its “proprietorship firm” with a “company” in disregard to and without resorting to the provisions of Section 230-232 of the Companies Act 2013. (ii) However, keeping all this analysis aside, when we re-visit the Amalgamation Agreement placed on record, we find that though the heading of the Agreement starts with the word Amalgamation, but no characteristics of Amalgamation are found present/followed in executing said document. Merely what ought to have been an “assignment deed” is executed and named as an “Amalgamation Agreement”. Therefore, in the interest of justice, we would not like to reject the Application and still examine the “debt” of the Applicant on its merits. (iii) It is the settled law that no pecuniary liability in regard to a claim for damages arises till a competent court adjudicates upon the claim for damages and holds that the defaulting party has committed a breach and incurred a liability to compensate the non-defaulting party for the loss. An alleged default or breach gives rise only to a right to sue for damages and not to claim any debt. (iv) Even otherwise, once agreeing to purchase the goods and subsequently, denying the purchase will not constitute an “Operational Debt” since there is neither any flow of goods/services nor any payment of consideration from one party to another in this chain.

Whether the amalgamation between a Sole Proprietorship Firm and a Company is valid in the eyes of the law or not? – SVS Marketing Sanitaryware Pvt. Ltd. v. Kajaria Bathware Pvt. Ltd. – NCLT New Delhi Bench Court-II Read Post »

How an unrelated Supreme Court decision could jeopardize Biden's new student-loan forgiveness plan before it even goes into effect

Biden released new details for his second attempt at student-loan forgiveness.
While it likely won't go into effect until the fall, an earlier Supreme Court decision could put the relief at risk.
The ruling would address whether agencies have the authority to interpret a law's scope, like debt relief.

New details for President Joe Biden's student-loan forgiveness plan are out — and it's already shaping up to be a rocky road to implementation.

The same day the Supreme Court struck down Biden's first attempt at broad debt relief at the end of June 2023, the Education Department announced its plan B: relief for borrowers using an authority under the Higher Education Act of 1965.

In contrast to the HEROES Act — the law Biden used for his first attempt at relief — the HEA requires the administration to undergo a process known as negotiated rulemaking . The process requires a series of negotiations with stakeholders before drafting the regulatory text for the rule, which then enters a period of public comment before the relief can be implemented.

The Education Department completed negotiations on the relief in February. It released new details of the rule on April 8 — but senior administration officials previously said the actual draft text would be published in the coming months, with the implementation of the relief set to begin in the fall, at the earliest.

Not only does this timeline coincide with the presidential election, which could imperil any relief should Biden lose — it also puts the relief under the shadow of Supreme Court rulings set to arrive by June.

How a Supreme Court ruling on fisheries could affect student-debt relief

Cary Coglianese, an administrative law professor at the University of Pennsylvania, told Business Insider that "there's a larger context within which this plan would be evaluated if it eventually goes to court, which I would expect it will."

And that larger context, Coglianese said, is "possibly the rolling back of deference to agencies altogether in their interpretation of statutes."

Lawsuits to likely target the law's broadness

While the regulatory text for Biden's new student-debt relief plan has not yet been published, its newly released details targeted different categories of borrowers the Education Department plans to make eligible for relief. It includes up to $20,000 in relief for borrowers with unpaid interest , along with loan forgiveness for those who have been in repayment for at least 20 years.

The Education Department has maintained it has the authority to enact this relief under the HEA's compromise and settlement authority , which states that the department can "enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand" related to federal student debt."

However, Luke Herrine — an assistant law professor at the University of Alabama — told BI that any legal challenge will likely take issue with the department's interpretation of the HEA's authority for debt relief and argue that Biden's plan is too broad.

"The fight is primarily going to be, I assume, over whether a clause that on its face looks very broad is actually as broad as it looks, which is partly a matter of, who gets to resolve the ambiguity with that clause? Do you defer to an agency to make that determination for the agency? And increasingly, it's the case that the conservative judiciary does not believe in any sort of deference to administrative agencies," Herrine said.

Herrine said he expects the same groups who brought the cases against Biden's first debt relief plan to challenge this second one. Some of them have already filed lawsuits challenging Biden's new SAVE income-driven repayment plan — including Missouri Attorney General Andrew Bailey, who wrote on X that he would see Biden in court after the release of new details for the debt relief.

Ultimately, it comes down to how courts interpret the Education Department's authority, and should legal challenges arise, Coglianese said it's likely the arguments will be very similar to the cases that ended up striking down the first student-loan forgiveness plan.

"The administration is certainly still facing a very skeptical Supreme Court," Coglianese said. "Even though it's a different statute, it's still a skeptical Supreme Court. It's still a pretty big program even though it's a smaller one."

"So it's a risk that the court will, in the end, not allow the administration to go forward with this for the same reasons it didn't allow it to go forward the first go around," he continued. "Clearly, though, it's a risk the administration wants to take on behalf of the American public and the large segment of the American public that's been burdened with a lot of student loans."

Watch: Why student loans aren't canceled, and what Biden's going to do about it

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The Evening

The house passed an extension of a surveillance law.

Also, the U.S. made it more expensive to drill on public land. Here’s the latest at the end of Friday.

Mike Johnson, in a blue suit and red-striped tie, walks with a crowd of reporters in the Capitol on Friday.

By Matthew Cullen

In a major turnaround, the House passed a two-year reauthorization of a controversial program that allows the government to collect the communications of targeted foreigners abroad without warrants. It must still clear the Senate.

The fate of the bill, which would extend a provision of law known as Section 702 of the Foreign Intelligence Surveillance Act, was unclear until just before it passed, as lawmakers considered a series of proposed changes. The House narrowly rejected a bipartisan effort to restrict searches of Americans’ messages swept up by the program, a top priority for some civil liberties advocates.

In an effort to persuade hard-right Republicans who had blocked the bill earlier in the week, Speaker Mike Johnson shortened the time frame for reauthorization from five years to two. The shorter time frame could allow Donald Trump to help dictate the program’s future if he is elected to another term. The former president had urged Republicans to “kill” the law, which he incorrectly asserted had been used to spy on his campaign.

Trump’s animosity toward the intelligence community goes back years. As president, he characterized it as part of a politicized “deep state” that was out to get him. But since he left office that distrust has grown into outright hostility ; he has repeatedly portrayed intelligence agencies as his enemy and vowed to “demolish” them.

The U.S. raised the price to drill on public land

The Biden administration today raised the royalty rates that companies must pay to extract oil, gas and coal from public lands. It was the first time since 1920 that the rates have increased , as President Biden looks to cement more of his environmental priorities before the end of his term.

The oil and gas industry strongly opposed the higher rates, but the increase is not expected to significantly discourage drilling .

Officials estimated that the new rules would raise costs for fossil fuel companies by about $1.5 billion between now and 2031. About half of that money would go to states, a third of it would fund water projects in the West and the rest would go to the Treasury and Interior Departments.

Biden canceled $7.4 billion more in student loans

Roughly 270,000 Americans were notified today that some or all of their student loans would be canceled, the Biden administration said. They were the latest group to be included in President Biden’s piecemeal loan forgiveness strategy, which he pivoted to after the Supreme Court struck down a more ambitious plan.

Today’s cancellations brought the administration’s total in debt forgiven to $153 billion , involving about 4.3 million borrowers. Officials said they hope to eventually reduce or cancel the debt of about 30 million borrowers.

Alcohol-related health issues are rising among women

Liver disease and other health problems related to alcohol use increased more than expected among women ages 40 to 64 during the pandemic, a new study found.

It was the latest addition to a growing body of evidence that rising alcohol consumption among women is leading to higher rates of death and disease . Men still die more often from drinking-related issues, but “the gap is narrowing,” one researcher said.

More top news

Israel: The U.S. issued new travel guidelines for the country , warning that Iran will avenge the killings of its senior commanders.

Texas: One person was killed and several others injured after a man drove a semi truck into a government office in Brenham.

Haiti: The country’s leaders set up a transitional ruling council to appoint a new acting prime minister and pave the way for the election of a new president.

Economics: A wave of rapid immigration is taxing local resources around the U.S. and drawing political anger. But it might leave the economy better off .

Campaign: Vice President Kamala Harris traveled to Arizona today to assail Donald Trump over abortion restrictions .

Politics: The Democratic National Committee helped pay for lawyers during the special counsel investigation into President Biden’s handling of classified documents.

Banking: The chief executive of JPMorgan Chase, the nation’s largest bank, warned of an “unsettling” global landscape that could weigh on its performance.

Opioids: The National Academy of Sciences is asking a court to allow it to strip the Sackler family name from endowment funds .

Higher education: Universities are relaunching their D.E.I. offices under different names to try to preserve diversity programs.

Fashion: Roberto Cavalli, the Italian fashion designer who celebrated glamour and excess, died at 83 .

TIME TO UNWIND

A quick end to a marriage made for reality tv.

Gerry Turner, who last year, at 72, became the first star of ABC’s “The Golden Bachelor,” once hoped that his marriage to Theresa Nist would serve as a reminder that people of any age can fall in love. But today the couple announced that they were getting divorced , just three months after they wed in front of millions of television viewers.

They cited difficulty finding a living situation near both of their respective families. Nist encouraged viewers who had been inspired not to be discouraged: “We say, ‘Don’t give up,’” she said.

Golf’s first major of the year is underway

The second round of the Masters is nearly complete, and it’s shaping up to be just as exciting as fans had hoped. Scottie Scheffler, whose delightfully awkward “Scottie Shuffle” swing has made him the best player in the world right now, is battling it out for the lead with Bryson DeChambeau.

The tournament is played every year at the beloved Augusta National Golf Club, which both players and fans know well. My colleagues at The Athletic picked out five holes that could decide who will emerge as the champion on Sunday.

Dinner table topics

Where are they now: We took a look at key figures from the O.J. Simpson trial and tracked down the famous White Bronco .

Hidden faces: A new Met show highlights artworks with secret portraits .

Remembering Flaco: Several New Yorkers have honored the escaped Central Park Zoo owl, who died in February, by getting tattoos of him .

A critic’s look: Reading this Frank O’Hara poem is like going on a perfect first date .

WHAT TO DO THIS WEEKEND

Cook: This simple pasta primavera uses the earliest available spring vegetables.

Watch: If you’re looking to see a new movie this weekend, here are seven we reviewed.

Read: Andrew Boryga's “Victim" is one of six new books we think you’ll enjoy.

Dine: Our dining-obsessed readers want to tell you the best restaurants in New York City .

Entertain: A home bar needs more than just liquor. Here’s how to set yours up.

Shop: Beat back the glare in style with our favorite sunglasses.

Compete: Take this week’s news quiz .

Play: Here are today’s Spelling Bee , Wordle and Mini Crossword . Find all of our games here .

ONE LAST THING

Serving up your fast food memories.

Our food critic Tejal Rao went to a pop-up restaurant in Los Angeles and was served a personal pan pizza that looked like the kind you might remember from a 1990s Pizza Hut. Except, somehow, this modern copy felt more like the real thing than anything you might get at a Pizza Hut today.

The restaurant, called Chain, specializes in exactly that . Dreamed up by the actor B.J. Novak, it taps into a feverish nostalgia for fast food of the past by remaking decades-old favorites from McDonald’s, KFC and other chains.

Have an evocative weekend.

Thanks for reading. I’ll be back on Monday. — Matthew

We welcome your feedback. Write to us at [email protected] .

Altice Debt Drama Brings US-Style Creditor Deals to Europe (1)

By Giulia Morpurgo and Irene García Pérez

Altice France ’s upcoming debt negotiations could see another export of the US restructuring market hitting Europe.

A group of secured creditors to billionaire Patrick Drahi ’s French telecommunications company is preparing to sign a six-month cooperation agreement that binds them to act together in debt negotiations, Bloomberg reported Friday . Such deals have become a common tool designed to prevent US restructurings from turning contentious, but remain a relative rarity in Europe.

European investors have been slow to embrace cooperation agreements because there is simply less creditor in-fighting, given the smaller market size and lack of legal precedent for ...

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Grocery prices, credit card debt, and your 401K (Two Indicators)

Wailin Wong

Cooper Katz McKim

Kate Concannon

CHICAGO, ILLINOIS - Grocery items are offered for sale at a supermarket on August 09, 2023. Despite inflation starting to settle, food inflation continues to climb in the double digits in many counties.

What's going on with consumers? This is one of the trickiest puzzles of this weird economic moment we're in. We've covered a version of this before under the term "vibecession," but it's safe to say, the struggle is in fact real. It is not just in our heads. Sure, sure, some data is looking great. But not all of it.

What's interesting, is exactly why the bad feels so much worse than the good feels good.

Today on the show, we look into a few theories on why feelings are just not matching up with data. We'll break down some numbers and how to think about them. Then we look at grocery prices in particular, and an effort to combat unfair pricing using a mostly forgotten 1930's law. Will it actually help?

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Three ways consumers are feeling the pinch.

Today's episode is adapted from episodes for Planet Money's daily show, The Indicator . Subscribe here .

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English law assignments of part of a debt: Practical considerations

United Kingdom | Publication | December 2019

Enforcing partially assigned debts against the debtor

The increase of supply chain finance has driven an increased interest in parties considering the sale and purchase of parts of debts (as opposed to purchasing debts in their entirety).

While under English law part of a debt can be assigned, there is a general requirement that the relevant assignee joins the assignor to any proceedings against the debtor, which potentially impedes the assignee’s ability to enforce against the debtor efficiently.

This note considers whether this requirement may be dispensed with in certain circumstances.

Can you assign part of a debt?

Under English law, the beneficial ownership of part of a debt can be assigned, although the legal ownership cannot. 1 This means that an assignment of part of a debt will take effect as an equitable assignment instead of a legal assignment.

Joining the assignor to proceedings against the debtor

While both equitable and legal assignments are capable of removing the assigned asset from the insolvency estate of the assignor, failure to obtain a legal assignment and relying solely on an equitable assignment may require the assignee to join the relevant assignor as a party to any enforcement action against the debtor.

An assignee of part of a debt will want to be able to sue a debtor in its own name and, if it is required to join the assignor to proceedings against the debtor, this could add additional costs and delays if the assignor was unwilling to cooperate. 2

Kapoor v National Westminster Bank plc

English courts have, in recent years, been pragmatic in allowing an assignee of part of a debt to sue the debtor in its own name without the cooperation of the assignor.

In Charnesh Kapoor v National Westminster Bank plc, Kian Seng Tan 3 the court held that an equitable assignee of part of a debt is entitled in its own right and name to bring proceedings for the assigned debt. The equitable assignee will usually be required to join the assignor to the proceedings in order to ensure that the debtor is not exposed to double recovery, but the requirement is a procedural one that can be dispensed with by the court.

The reason for the requirement that an equitable assignee joins the assignor to proceedings against the debtor is not that the assignee has no right which it can assert independently, but that the debtor ought to be protected from the possibility of any further claim by the assignor who should therefore be bound by the judgment.

Application of Kapoor

It is a common feature of supply chain finance transactions that the assigned debt (or part of the debt) is supported by an independent payment undertaking. Such independent payment undertaking makes it clear that the debtor cannot raise defences and that it is required to pay the relevant debt (or part of a debt) without set-off or counterclaim. In respect of an assignee of part of an independent payment undertaking which is not disputed and has itself been equitably assigned to the assignee, we believe that there are good grounds that an English court would accept that the assignee is allowed to pursue an action directly against the debtor without needing the assignor to be joined, as this is likely to be a matter of procedure only, not substance.

This analysis is limited to English law and does not consider the laws of any other jurisdiction.

Notwithstanding the helpful clarifications summarised in Kapoor, as many receivables financing transactions involve a number of cross-border elements, assignees should continue to consider the effect of the laws (and, potentially court procedures) of any other relevant jurisdictions on the assignment of part of a debt even where the sale of such partial debt is completed under English law.

Legal title cannot be assigned in respect of part of a debt. A partial assignment would not satisfy the requirements for a legal assignment of section 136 of the Law of Property Act 1925.

If an assignor does not consent to being joined as a plaintiff in proceedings against the debtor it would be necessary to join the assignor as a co-defendant. However, where an assignor has gone into administration or liquidation, there may be a statutory prohibition on joining such assignor as a co-defendant (without the leave of the court or in certain circumstances the consent of the administrator).

[2011] EWCA Civ 1083

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COMMENTS

Debt Assignment: How They Work, Considerations and Benefits
Debt Assignment: A transfer of debt, and all the rights and obligations associated with it, from a creditor to a third party . Debt assignment may occur with both individual debts and business ...
Assigning debts and other contractual claims
Section 136 of the Law of the Property Act 1925 kindly obliged. This lays down the conditions which need to be satisfied for an effective legal assignment of a chose in action (such as a debt). We won't bore you with the detail, but suffice to say that what's important is that a legal assignment must be in writing and signed by the assignor ...
Assignment Of Debt: Definition & Sample
Assignment of debt is an agreement that transfer debt, rights, and obligations from a creditor to a third party. Assignment of debt agreements are commonly found when a creditor issues past due debt to a debt collection agency. The original lender will be relieved of all obligations and the agency will become the new owner of the debt.
Assignment Of Debt Agreement: Definition & Sample
An assignment of debt agreement is a legal document between a debtor and creditor that outlines the repayment terms. An assignment of debt agreement can be used as an alternative to bankruptcy, but several requirements must be met for it to work. In addition, if obligations are not met under a debt agreement, it might still be necessary to file ...
What Is an Assignment of Debt?
Contents1 What Is an Assignment of Debt? The Legal Ins and Outs Explained2 A Crash Course on Debt Assignments3 Why Do Creditors Assign Debts?4 The Debt Assignment Process 1015 Your Rights When Debts Get Assigned6 Potential Downsides of Debt Assignments7 Tips for Dealing With Assigned Debts8 Creditor Responsibilities With Assignments9 The ...
What is an Assignment of Debt?
An assignment of debt, in simple terms, is an agreement that transfers a debt owed to one entity, to another. A creditor does not need the consent of the debtor to assign a debt. Once a debt is properly assigned, all rights and responsibilities of the original creditor (the assignor) transfer to the new owner (the assignee).
Debt Assignment and Assumption Agreement
A Debt Assignment and Assumption Agreement is a very simple document whereby one party assigns their debt to another party, and the other party agrees to take that debt on. The party that is assigning the debt is the original debtor; they are called the assignor. The party that is assuming the debt is the new debtor; they are called the assignee.
How Does Debt Assignment Work?
Debt assignment refers to a transfer of debt. This includes all of the associated rights and obligations, as it goes from a creditor to a third party. Debt assignment is essentially the legal transfer of debt to a debt collector (or debt collection agency). After this agency purchases the debt, they will have the responsibility to collect the debt, meaning you will pay your debt to them.
Hidden Delegations: The Assignment of Contractual Rights and Consumer Debt
Returning to debts: On the supposition that duties are sticky and should not be subject by default to unilateral, extinguishing transfer, the hidden duty-delegation embedded within debt assignment suggests two issues with the permissive common law treatment. First, debt assignments are permitted to occur without the consent of the obligor.
assignment
Assignment is a legal term whereby an individual, the "assignor," transfers rights, property, or other benefits to another known as the " assignee .". This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights /property/benefits being transferred.
A New Solution Concerning Choice-of-law for The Assignment of Debts
II. The Legal Structure of Assignments. For private international law purposes, debts are classified and dealt with as pure intangibles. Footnote 18 The legal concept of assignment is used to describe how the rights to direct the disposition of debts can be transferred. Footnote 19 An assigned debt is essentially a personal right against the debtor, but the way it is assigned mirrors the ...
Assignments: The Basic Law
Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court, 35 Cal. 2d 109, 113-114 (Cal. 1950). An assignment will generally be permitted under the law unless there is an express prohibition against assignment ...
FAQs on assignments in finance transactions
the law of assignment in English law finance transactions. 1. Are all notified assignments legal assignments? No, while all legal assignments must have been ... mutual debt litigation set-offs) that the debtor has against the assigned rights from its dealing with the assignor and which
English law assignments of part of a debt: Practical considerations
Under English law, the beneficial ownership of part of a debt can be assigned, although the legal ownership cannot. 1 This means that an assignment of part of a debt will take effect as an equitable assignment instead of a legal assignment.
Assignment (law)
Assignment (law) Assignment [1] is a legal term used in the context of the laws of contract and of property. In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. [2] An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee.
What is an Assignment of Debt?
an equitable assignment of debt will transfer only the benefit of the debt without the right to enforce it. Let us explore each type below. Legal Assignment of Debt . If the assignment complies with specific legal requirements under the Law of Property Act 1925, it will be a 'legal assignment'. This means that the assignee will be the new ...
Assignment Involves Transfer of Rights to Collect Outstanding Debts
The ability to assign a debt or legal chose in action is codified in s. 53 of the Conveyancing and Law of Property Act, which provides that a debt is assignable subject to the equities between the original debtor and creditor and reads as follows:. 53 (1) Any absolute assignment made on or after the 31st day of December, 1897, by writing under the hand of the assignor, not purporting to be by ...
Assignment of debt
Assignment of debt. The assignment of debt in good faith is not invalid even if the necessity for litigation to recover it is contemplated by the parties. Free Practical Law trial. To access this resource, sign up for a free trial of Practical Law. Free trial Opens in a new window.
Assignment of Debt
An assignment of debt is governed by Section 4(3) of the Civil Law Act 1956 (the "Act") (cited with approval in the Federal Court case of UMW Industries Sdn Bhd v Ah Fook, in which, the elements of a statutory assignment of debt can be summarized as follows:
Legal assignment
Legal assignment. The usual way of assigning the benefit of any debt or other legal thing in action under section 136 of the Law of Property Act 1925. Under that section, the basic requirements for a legal assignment are as follows: Only the benefit of an agreement may be assigned. The assignment must be absolute. The rights to be assigned must ...
Factoring and Set off Rights
Law on factoring and its effect on set off rights. Under Hong Kong law, the assignment of debts is governed by both statute and common law principles. Section 9 of the Law Amendment and Reform (Consolidation) Ordinance (Cap. 23) (the Ordinance) provides that:-. " Any absolute assignment, by writing under the hand of the assignor (not ...
Debt Assignment of Debt Archives
In this important judgment, NCLT New Delhi Bench holds that: (i) The assignment of debt essentially being a transaction between the Creditor and the Assignee and assignment being recognized by the Code, 2016 as a valid mode of transfer of rights across the ambit of Section 5 (7) of the Code, therefore, the entity who received the said ...
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Biden released new details for his second attempt at student-loan forgiveness. While it likely won't go into effect until the fall, an earlier Supreme Court decision could put the relief at risk ...
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April 17, 2024 at 11:53 AM PDT. Listen. 2:01. Seafood restaurant chain Red Lobster is mulling a Chapter 11 bankruptcy filing as it looks to restructure its debt, according to people with knowledge ...
Student loan debt: Biden to forgive $7.4 billion more for 277,000 ...
The Biden administration said Friday that is using existing student loan forgiveness programs to cancel another round of student debt, totaling $7.4 billion for 277,000 borrowers.
The House Passed an Extension of a Surveillance Law
By Matthew Cullen. April 12, 2024. In a major turnaround, the House passed a two-year reauthorization of a controversial program that allows the government to collect the communications of ...
Altice Debt Drama Brings US-Style Creditor Deals to Europe (1)
Altice France 's upcoming debt negotiations could see another export of the US restructuring market hitting Europe. A group of secured creditors to billionaire Patrick Drahi 's French telecommunications company is preparing to sign a six-month cooperation agreement that binds them to act together in debt negotiations, Bloomberg reported Friday.
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Up until a year ago, the U.K.'s private equity debt finance legal advisers had an established order. But since September a series of moves involving the biggest names in the market have shaken ...
Grocery prices, credit card debt, and your 401K (Two Indicators)
Data checking consumer struggles on grocery prices, credit card debt, ... Then we look at grocery prices in particular, and an effort to combat unfair pricing using a mostly forgotten 1930's law ...
English law assignments of part of a debt: Practical considerations
A partial assignment would not satisfy the requirements for a legal assignment of section 136 of the Law of Property Act 1925. 2 If an assignor does not consent to being joined as a plaintiff in proceedings against the debtor it would be necessary to join the assignor as a co-defendant.

Debt Assignment: How They Work, Considerations and Benefits

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