Any deed of assignment may contain a provision to the effect that those creditors who accept such assignment do so in full satisfaction of their respective claims and shall be forever barred from further recovery of any balance.
§ 8.01-525.4.Provision to bar further claim by creditors who accept deed.
Chapter 18.1. Assignments for Benefit of Creditors · Article 1. Assignment of Property · Last amended 2019 · Last verified July 16, 2026
In one sentencePermits a deed of assignment to include language stating that any creditor who accepts the assignment does so in full satisfaction of the claim and is forever barred from pursuing any remaining balance.
Full Text of § 8.01-525.4
Plain-English Summary
A creditor who accepts distribution under a deed of assignment might expect to still chase the debtor for whatever the distribution did not cover. Section 8.01-525.4 lets the deed shut that door if the drafters choose to.
The deed can include a provision saying that acceptance equals full satisfaction — a creditor who takes what the assignment offers gives up any further recovery of a remaining balance, permanently. It functions like a release built into the mechanics of the assignment itself, giving the debtor and the trustee winding up the estate certainty that participating creditors will not come back later for the rest.
This is not automatic; it depends on the deed containing that provision, which is why § 8.01-525.1 elsewhere in the assignment process requires the trustee’s sale notice to tell creditors up front whether the deed includes this full-satisfaction language, so they can decide whether accepting is worth it.
Frequently Asked Questions
Can a deed of assignment bar creditors from seeking any unpaid balance after accepting?
Yes, if the deed includes a provision to that effect.
What does accepting the assignment mean for a creditor under such a provision?
It is treated as full satisfaction of the creditor’s claim.
Is this bar-on-further-claims provision mandatory in every deed of assignment?
No, the statute says a deed may contain such a provision, not that it must.
How would a creditor know in advance whether the deed includes this provision?
The trustee’s required notice of sale must state whether the deed provides that acceptance is in full satisfaction.
What happens to a creditor’s remaining claim if the deed lacks this provision?
Nothing bars further recovery, since the bar only applies when the deed contains the provision.
Amendment History
1924, p. 658; Michie Code 1942, § 5278d; Code 1950, § 55-159; 2019, c. 712.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as: virginia deed of assignment full satisfaction clausecreditor barred further claim assignment virginiava code 8.01-525.4accepting deed of assignment consequences virginiarelease of claim assignment for benefit of creditors