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Rule 4:54.Assignments for benefit of creditors

Last amended September 3, 2002 · Current through June 18, 2026 · Last verified July 7, 2026

In one sentenceRule 4:54 has the practice for assignments for the benefit of creditors follow, as closely as practicable, the same procedure used for insolvent corporations, with assignees' accounts settled the same way.

Full Text of Rule 4:54

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The practice relating to assignments for the benefit of creditors under N.J.S. 2A:19-1 et seq. shall conform as nearly as practicable to the procedure relating to insolvent corporations. Accounts of assignees for the benefit of creditors shall be settled pursuant to R. 4:87-1 and 4:87-2.

Amendment History

New Jersey publishes each rule’s amendment record in a “History” note beneath the rule. It is reproduced verbatim below; the “R.R.” citations refer to the former Revised Rules numbering the current rules replaced.

Source-R.R. 4:69; amended July 12, 2002 to be effective September 3, 2002.

Plain-English Summary

An assignment for the benefit of creditors is its own statutory device, but this rule keeps its procedure from diverging too far from more familiar ground: it directs that the practice conform, as nearly as practicable, to the procedure governing insolvent corporations.

That includes how the assignee accounts for the assigned estate — settled the same way a receiver's or trustee's account is settled under the rules governing the filing and audit of those accounts.

Frequently Asked Questions

What procedure governs an assignment for the benefit of creditors in New Jersey?

The same procedure used for insolvent corporations, as nearly as practicable, including how the assignee's accounts are settled.

Source & verification. The rule text and amendment history are reproduced verbatim from the official New Jersey Rules of Court (N.J. Ct. R. 4:54). Prescribed by the Supreme Court of New Jersey (N.J. Const. art. VI, § 2, ¶ 3). The plain-English summary is original and written by us. Last verified July 7, 2026. · Official source
Also known as: assignment for benefit of creditors