Delaware Enacts Uniform Assignment for the Benefit of Creditors Act with Minor Modifications
June 30, 2026
Publication| Bankruptcy & Corporate Restructuring
Delaware recently became the sixth state to enact the Uniform Law Commission’s (ULC) Uniform Assignment for the Benefit of Creditors Act (Uniform Act), with minor modifications (the Delaware Act). This two-part article describes the innovations, certainty and paradigm provided by the Uniform Act and Delaware’s revisions to the Uniform Act. Part One includes background regarding assignments for the benefit of creditors, including historical shortcomings that the Uniform Act is intended to address. Part Two will discuss the Uniform and Delaware Acts in more detail, including the uniformity, clarity, flexibility, and efficiency provided by the Uniform Act, and the specific refinements incorporated into the Delaware Act. Given that the majority of business entities are formed under Delaware Law, Delaware’s enactment will be welcome news to practitioners. Specifically, because the Uniform Act allows entities to commence an ABC in their state of incorporation, it will provide all Delaware entities the ability to access the Uniform Act’s paradigm.