As used in this chapter, "general assignment for the benefit of creditors" means an assignment which satisfies all of the following requirements:
§ 493.010.General Assignment For the Benefit of Creditors Defined
Title 6.5. Attachment · Chapter 13. Effect of Bankruptcy Proceedings and General Assignments for the Benefit of Creditors · Last amended 1983 · Last verified July 28, 2026
In one sentenceSection 493.010 defines a general assignment for the benefit of creditors as an assignment of all the defendant's transferable, non-exempt assets, made for the benefit of every creditor, that does not itself create a new preference among creditors even though it may recognize preferences that already exist.
Full Text of § 493.010
(a) The assignment is an assignment of all the defendant's assets that are transferable and not exempt from enforcement of a money judgment.
(b) The assignment is for the benefit of all the defendant's creditors.
(c) The assignment does not itself create a preference of one creditor or class of creditors over any other creditor or class of creditors, but the assignment may recognize the existence of preferences to which creditors are otherwise entitled.
Plain-English Summary
A "general assignment for the benefit of creditors" is a specific legal term this chapter uses repeatedly, and § 493.010 spells out what qualifies. Three conditions must all be met. First, the assignment must cover all of the defendant's assets that are both transferable and not exempt from enforcement of a money judgment -- a partial handover of just some assets does not qualify.
Second, the assignment must be for the benefit of all the defendant's creditors, not a favored subset. Third, the assignment cannot itself create a new preference among creditors or classes of creditors -- though it may recognize preferences creditors already had before the assignment was made.
This definition matters because only an assignment meeting all three conditions triggers the lien-termination consequences set out later in this chapter, particularly § 493.030.
Frequently Asked Questions
What qualifies as a general assignment for the benefit of creditors under California law?
Section 493.010 requires it to cover all the defendant's transferable, non-exempt assets, benefit all the defendant's creditors, and not itself create a new creditor preference, though it may recognize existing preferences.
Can a debtor make a partial assignment covering only some assets and have it qualify?
No. Section 493.010(a) requires the assignment to cover all the defendant's transferable, non-exempt assets to qualify as a general assignment for the benefit of creditors.
Can the assignment favor one creditor over another?
Not by creating a new preference. Section 493.010(c) bars the assignment itself from creating a preference, though it may recognize a preference a creditor already held.
Amendment History
Amended by Stats. 1982, Ch. 1198, Sec. 61. Operative July 1, 1983, by Sec. 70 of Ch. 1198.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
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