§ 1802.Notice of Assignment Given By Assignee
Title 11.7. Recovery of Preferences and Exempt Property in an Assignment for the Benefit of Creditors · Enacted 1992 · no amendments on record · Last verified July 29, 2026
Full Text of § 1802
Plain-English Summary
Creditors can't file a claim in an assignment proceeding they don't know exists, and Section 1802 makes sure they find out promptly. Once the assignee accepts a general assignment for the benefit of creditors in writing, the assignee has 30 days to send written notice of the assignment to every creditor, equityholder, and other interested party on the list the assignor is required to provide.
That notice does more than announce the assignment; it sets the clock running for the whole claims process. The assignee has to fix a claims-filing deadline somewhere between 150 and 180 days after the notice first goes out, giving creditors a defined window to submit claims before distribution begins. None of this works, though, without the assignor's own cooperation: at the time of the assignment, the assignor must hand the assignee a sworn list of every creditor, equityholder, and interested party, complete with contact information and each person's anticipated claim amount, which is what lets the assignee's notice reach the right people in the first place.
Frequently Asked Questions
How soon must the assignee notify creditors after accepting the assignment?
Within 30 days after accepting the assignment in writing.
How long do creditors have to file claims?
The assignee sets a filing deadline between 150 and 180 days after the notice is first given.
Where does the assignee get the list of creditors to notify?
From the assignor, who must provide a sworn list of creditors, equityholders, and other interested parties, along with their anticipated claim amounts, at the time of the assignment.
What happens if the assignor's list is incomplete?
The section doesn't excuse the assignee's notice duty, but the assignee's obligation runs to the parties identified on the list the assignor supplies under penalty of perjury.
Amendment History
Added by Stats. 1992, Ch. 1348, Sec. 8. Effective January 1, 1993.