In an assignment for benefit of creditors, as long as each creditor is paid an equal percent of the amount he or she is owed, the debtor is discharged as to that creditor.

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An assignment for the benefit of creditors does not automatically discharge the debtor from the debts owed to the creditors, even if each creditor is paid an equal percentage. The discharge of debts typically requires a formal bankruptcy proceeding.

In an Assignment for Benefit of Creditors, as Long as Each