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VOLUNTARY ASSIGNMENTS

KRS tit. XXXI, ch. 379
in effect

KRS 379.010 Voluntary assignments for benefit of creditors -- Preferred claims

379.010. Voluntary assignments for benefit of creditors -- Preferred claims (1) Every voluntary assignment made by a debtor to any person in trust for his creditors shall be for the benefit of all his creditors, except as provided in subsections (2) and (3) of this section, in proportion to their respective claims after the payment of the expenses of the trust. (2) Any property conveyed by the deed of assignment upon which there is a valid lien shall be first applied to the discharge of the lien debt, and if the property is not sufficient to satisfy the lien debt, the lien creditor may present the unsatisfied remainder as a claim against the estate and receive thereon his pro rata share of the assets in the same manner as general creditors. (3) Debts due by the assignor as guardian, conservator, trustee of an express trust created by deed or will or as personal representative shall be paid in full before the general creditors receive anything. Effective: July 1, 1982 History: Amended 1982 Ky. Acts ch. 141, sec. 95, effective July 1, 1982. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 74. Note: 1980 Ky. Acts ch. 396, sec. 104 would have amended this section effective July 1, 1982. However, 1980 Ky. Acts ch. 396 was repealed by 1982 Ky. Acts ch. 141, sec. 146, also effective July 1, 1982.

KRS 379.020 Deed of assignment -- Recordation -- Effect of deed -- Schedule of assignor

379.020. 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 (5) 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. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 75.

KRS 379.030 Bond of assignee -- Appointment of another on failure to qualify -- On failure to furnish additional security

379.030. Bond of assignee -- Appointment of another on failure to qualify -- On failure to furnish additional security (1) The assignee shall, when the deed of assignment is lodged for record or within seven (7) days thereafter, execute a bond with good security, approved by the District Court, conditioned upon the faithful discharge of his duties as assignee. The bond shall be recorded in the court clerk's office. If the person named in the deed as assignee fails for any cause within the time named to qualify or to execute a sufficient bond, the District Court shall, by order entered of record, appoint an assignee who shall, within five (5) days, give bond with good surety, and who shall thereupon be vested with the same rights, powers and responsibilities with respect to the estate assigned as if named in the deed. (2) The court may at any time, upon its own motion or upon motion of any party in interest and after ten (10) days' notice to the assignee, require him to execute a new bond or give additional security if the original bond is not sufficient. If the assignee fails or refuses to execute a new bond or give additional security within the time allowed by the court, the court shall, by an order entered of record, remove the assignee and appoint another in his stead. The newly appointed assignee shall execute bond in the same manner as the original assignee and proceed to settle up the estate, and to this end he may institute any necessary proceedings against the former assignee and his sureties. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 291, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 76, 77.

KRS 379.040 Resignation or removal of assignee

379.040. Resignation or removal of assignee (1) An assignee may resign his trust upon settling his accounts, and the settlement shall be confirmed and the assignee discharged from liability sixty (60) days after the settlement has been filed, if no exceptions are filed thereto. If exceptions are filed, they shall be heard and determined by the court. (2) If an assignee moves his residence out of the state, or becomes insane or otherwise incapable of discharging the trust, the court may, upon ten (10) days' notice to him, his attorney or committee, remove the assignee and appoint another in his stead. If creditors representing one-half (1/2) in number and two-thirds (2/3) of the amount of debts against the estate so request in writing, the court shall remove the assignee and appoint another in his stead. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 292, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 78, 79.

KRS 379.050 Supervision of assignee by District Court -- Exception -- Filing of inventory of assignee

379.050. Supervision of assignee by District Court -- Exception -- Filing of inventory of assignee (1) The assignee shall, except as provided in KRS 379.170, be subject to the orders and supervision of the District Court and may be required at any time upon reasonable notice to file any report ordered. He may, when the court so directs, be examined in open court touching the condition of the estate and its management. (2) The assignee shall file in the clerk's office of the District Court, as soon as possible, and within fifteen (15) days after his qualification unless the court allows a longer time, an inventory verified by him of all the property that came into his hands. If any property comes to the possession of the assignee after filing the inventory, he shall, in like manner, file an inventory thereof. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 293, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 81, 82.

KRS 379.060 Proceedings, orders and summons of the court -- Attendance of assignor or his debtors

379.060. Proceedings, orders and summons of the court -- Attendance of assignor or his debtors (1) All orders and proceedings in the District Court, except as otherwise provided, shall be ex parte and upon motion, and in no case need a petition be filed. A notice or summons shall not be issued to any person unless ordered by the court or requested by a person in interest. If an exception is filed to a claim or report, the party affected thereby shall have ten (10) days' notice of the time of hearing. (2) The court may, upon the request of the assignee or any creditor, require the assignor or any person indebted to him to appear in court after reasonable notice and answer questions deemed proper concerning the estate or claims against it. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 294, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 83, 89.

KRS 379.070 Preferential or fraudulent transfer or purchase prior to deed of assignment -- Effect -- Action by assignee or creditor

379.070. Preferential or fraudulent transfer or purchase prior to deed of assignment -- Effect -- Action by assignee or creditor If the assignor has, before making the deed of assignment, made a preferential or fraudulent transfer, conveyance or gift of any of his property or a fraudulent purchase of any property in the name of another, the property fraudulently transferred, conveyed, given or purchased shall vest in the assignee. The assignee shall institute the proceedings necessary to recover the property so disposed of, using any remedy which a creditor might exercise. If the assignee upon demand refuses to institute such proceedings, any creditor may do so, and the property recovered shall become a part of the estate and be distributed as other assets. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 84.

KRS 379.080 Exemptions claimed by assignor -- Proceedings

379.080. Exemptions claimed by assignor -- Proceedings (1) If the assignor reserves any of his property as exempt, the court shall appoint three (3) competent and disinterested housekeepers, who, after being first duly sworn, shall set apart to the debtor the property exempt, and within ten (10) days thereafter the assignee shall file a report thereon. Exceptions may be filed to the report by any person in interest but not later than sixty (60) days after the report has been filed. The court shall hear and dispose of any exceptions and if none are filed it shall confirm the report. (2) If land is exempt, an order shall be entered directing the assignee to employ, if necessary, a competent surveyor to lay off by metes and bounds the homestead exemption as set apart by the appraisers. The court may, with the consent of the assignor, and if it appears best for the interest of the creditors, or if the land is not divisible without impairing its value, order the property sold and the value of the homestead, not exceeding five thousand dollars ($5,000), paid to the assignor. Effective: July 15, 1980 History: Amended 1980 Ky. Acts ch. 236, sec. 7, effective July 15, 1980. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 295, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 85, 86.

KRS 379.090 Sale of property by assignee

379.090. Sale of property by assignee (1) Personal property conveyed by the deed of assignment shall be sold by the assignee at private or public sale as the court may direct, and the assignee may pass title as fully as the assignor could have done at the date of the assignment. (2) Real property, when sold at public sale, shall be sold in the same manner and upon the same terms as real property sold at decretal sale. However, the purchaser may pay and the assignee accept cash in payment of the purchase price, and the court may make any order it deems proper concerning the advertisement of the sale. The assignee may convey and pass all the right and title which the grantor in the deed of assignment had at its date. (3) The report of sale shall be filed by the assignee within ten (10) days after the sale, and if no exceptions are filed thereto within sixty (60) days after it has been filed, the report shall be confirmed. If exceptions are filed, they shall be heard by the court and disposed of. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 296, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 87.

KRS 379.100 Receipt of claims by assignee -- Notice of -- Filing

379.100. Receipt of claims by assignee -- Notice of -- Filing The assignee shall, within two (2) months after his appointment, give notice of the time and place where he will sit to receive claims against the estate. The notice shall be by publication pursuant to KRS Chapter 424. Creditors not residing in the county where the assignee qualifies shall be notified by mailing notice to their last known address. Any creditor failing to present his claim at the time named or within three (3) months thereafter, verified in the same manner as a claim against the estate of a decedent except that it need not be verified by a person other than the claimant, shall waive his right to any part of the assigned estate. However, the court may direct the assignee to receive a claim at any time before the final distribution of the estate, and allow it and pay dividends thereon as on other claims, if there are sufficient unappropriated assets in his hands. Claims not due shall be presented in the same manner as claims due, but if claims not due are not bearing interest a just abatement shall be made. Effective: October 1, 1942 History: Created 1966 Ky. Acts ch. 239, sec. 218. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 90.

KRS 379.110 Compromise or sale of debts due or claims against estate

379.110. Compromise or sale of debts due or claims against estate If it appears to be to the interest of the estate, the court may enter an order directing the assignee to sell, compound or compromise any debt due the estate, or to compromise any claim against the estate, but no such order shall be made within thirty (30) days after the application therefor has been made and filed. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 94.

KRS 379.120 Allowance or rejection of claims by assignee -- Report to court -- Exceptions -- Court determination

379.120. Allowance or rejection of claims by assignee -- Report to court -- Exceptions -- Court determination The assignee may administer oaths and examine witnesses concerning claims, and may allow or refuse to allow any claim or part thereof. He shall file in the District Court, within six (6) months after his appointment and every three (3) months thereafter until discharged, a list of all claims presented to him, together with his reasons for refusing any claim not allowed, and sixty (60) days thereafter the report shall be confirmed unless exceptions to it are filed. Any creditor may file exceptions to the report because of the failure to allow his claim, or because of the allowance of any claim, and the court shall hear and determine the exceptions. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 297, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 91.

KRS 379.130 Distribution -- When to be made -- Report on -- Exceptions -- Court determination

379.130. Distribution -- When to be made -- Report on -- Exceptions -- Court determination As soon as practicable and within nine (9) months after his appointment, the assignee shall pay upon the claims allowed such an amount as the means on hand permit, after deducting expenses and his allowance, which shall be fixed by the court. He shall thereafter, when he has funds sufficient to pay five (5) percent on the claims allowed, distribute that amount. Within fifteen (15) days after each distribution he shall file in court a report of the same, which shall lie over until the second regular term and if no exceptions are filed it shall then be confirmed. If exceptions are filed, they shall be heard and determined by the court. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 92.

KRS 379.140 Discharge of assignee -- Notice -- Proceedings

379.140. Discharge of assignee -- Notice -- Proceedings The assignee may, when he believes it is no longer to the interest of the estate to keep the assignment open, move the District Court to discharge him from the trust and release him from all liability. He shall have notice of his application to discharge published pursuant to KRS Chapter 424. Sixty (60) days after the motion is entered, the court shall, upon proof that the required notice was given, enter an order discharging the assignee from his trust and releasing him from all liability, unless objection is made. If objection is made, the court shall hear the same and make such orders as are proper. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 298, effective January 2, 1978. -- Amended 1966 Ky. Acts ch. 239, sec. 219. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 93.

KRS 379.150 Settlement or compromise by assignor with creditors to be filed in court -- Assignee discharged

379.150. Settlement or compromise by assignor with creditors to be filed in court -- Assignee discharged If the assignor settles or compromises with his creditors before the final discharge of the assignee or settlement of the estate, the writing showing the settlement or compromise shall be filed in the District Court and an order made discharging the assignee. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 299, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 95.

KRS 379.160 Appeals from judgments

379.160. Appeals from judgments An appeal may be taken from the judgment of the District Court overruling or sustaining an exception by the assignor, assignee or any party in interest, to the Circuit Court. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 300, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 88.

KRS 379.170 Circuit court has jurisdiction of action for settlement of estate

379.170. Circuit court has jurisdiction of action for settlement of estate (1) The provisions of KRS 379.010 to 379.160 shall not prevent an action to settle an estate by the assignee, or by any creditor or creditors representing one-fourth (1/4) of the liabilities, from being brought in the Circuit Court. When an action involving a settlement of the estate is brought in the Circuit Court of the county in which the assignment was made, the jurisdiction of the District Court shall cease, and all papers relating to the estate filed in the District Court shall be transferred by the clerk of the Circuit Court to the files of the Circuit Court. The Circuit Court may exercise any power conferred on the District Court by KRS 379.010 to 379.160 in administering and settling the assigned estate. (2) The assignee may sell the personal and real property belonging to the assigned estate, at public or private sale, and convey and pass all the right and title to the same which the grantor had in the deed of assignment at its date. The assignee shall, within ten (10) days after the sale, report the sale to the Circuit Court in which the suit for settlement of the estate is pending. The report shall thereupon be laid over ten (10) days for exceptions, and if no exceptions are filed within that time the report shall thereupon be confirmed. If exceptions are filed, they shall be heard and determined by the court. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 301, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 96.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=39144Fetched: 10/20/2026

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