Deed of Trust or Assignment for the Benefit of Creditors
KRS 379.020 (AKA Bankruptcy Deed)
Definition for “Assignment for benefit of creditors” A general assignment for benefit of creditors is transfer of all or substantially all of debtor’s property to another person in trust to collect any money owing to debtor, to sell property, to distribute the proceeds to his creditors and to return the surplus, if any, to debtor. Under Bankruptcy Act of 1898, such assignment was an “act of bankruptcy” if made within four (4) months of bankruptcy. Black’s Law Dictionary
Definition for Voluntary assignment – An assignment made for the benefit of his creditors made by a debtor voluntarily, as distinguished from a compulsory assignment which takes place by operation of law in proceedings in bankruptcy. Such constitutes as assignment of a debtor’s property in trust to pay his debts generally, in distinction from a transfer of property to a particular creditor in payment of his demand, or to a conveyance by way of collateral security or mortgage. Black’s Law Dictionary
The document must have:
- First party (debtor seller, grantor) and their mailing address (KRS 379.020, KRS 382.135, 382.200)
- Second party (Trustee) and their mailing address (KRS 379.020, KRS 382.135, KRS 382.200)
- Consideration Statement / Fair Market Value would be applicable if real property is involved (KRS 385.135)
- Legal description (Common Law) and OAG 81-100
- Source of title if applicable (KRS 382.110)
- Preparation statement (KRS 382.335)
- Return mail address (KRS 382.335 & KRS 382.240)
The grantor must sign the deed and the signatures must be acknowledged (notarized). The grantor and grantee must sign the consideration statement and the signatures must be notarized. (KRS 382.135 & KRS 382.130) The document must be filed in the county clerk’s office of the county where the property is located (or the greater part). KRS 382.110.
79.020 DEED OF ASSIGNMENT; RECORDATION; EFFECT OF DEED; SCHEDULE OF ASSIGNOR
(1) The deed of assignment shall be acknowledged by the assignor in the same manner as other deeds and shall be recorded in the county clerk’s office of the county where the assignor resides, where the business in respect to which the deed is made is carried on, and in each county where a tract of land or the greater part thereof conveyed by the deed is situated.
(2) The deed shall vest in the assignee title to all the property, real and personal, with all deeds, books and papers relating thereto belonging to the assignor at the time of making the assignment, except property exempt by law which shall not pass unless embraced in the deed. The intent of the assignor in making the assignment, whether appearing upon the face of the deed or otherwise, shall not invalidate the deed, unless he is solvent and it appears that the assignment was made to hinder or delay creditors.
(3) The assignor shall, within five days from the day upon which the deed is lodged for record, file for record in the county where the assignee qualifies a schedule under oath, setting forth the general nature and full value of the property assigned, together with a list of his creditors, their post office address, the amount due each and whether secured by lien or not.
Boyd County Clerk
Boyd County Courthouse
2800 Louisa St.
Catlettsburg, Ky. 41129
Phone: (606) 739-5116
Cedar Knoll Mall
Phone: (606) 929-9595
335 16th Street
Ashland, Ky. 41101
Phone: (606) 325-3547