N.J. Stat. tit. 2A, ch. 19

in effect

N.J. Stat. § 2A:19-1 Definitions.

2A:19-1. As used in this chapter: a. "General assignment" means a transfer or conveyance by a debtor in writing, whereby the debtor transfers or conveys to an assignee, in trust for the benefit of his creditors, all of his property. A "general assignment" includes an assignment by a debtor made under section 2A:20-6 of this title. b. "Debtor" means any person liable on a debt, including any person in actual confinement or discharged under bond pursuant to chapter 20 of this title. c. "Court" means the Superior Court. d. "Creditor" includes any person to whom a debt is due. e. "Debt" includes any debt, demand or claim. f. "Assignor" means any debtor who has executed a general assignment. g. "Assignee" means an assignee under a general assignment, including an assignee appointed under chapter 20 of this title. L.1951 (1st SS), c.344; amended 1991,c.91,s.70.

N.J. Stat. § 2A:19-2 Assignments must be for equal benefit; preferences void

Every general assignment made by a debtor residing in this state shall be made for the equal benefit of his creditors in proportion to their several demands, to the extent of the net amount that shall come to the hands of the assignee for distribution. All preferences attempted to be made in any such assignment of one creditor over another, or whereby any one creditor shall be first paid or have a greater proportion in respect of his claim than another, shall be deemed fraudulent and shall render the assignment void. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-3 Transfer of property within 4 months of assignment to give preference void; recovery of property

If any person being insolvent or in contemplation of insolvency shall, within 4 months before the making of a general assignment, and with the intention of preferring any creditor or person under liability for him, mortgage, pledge, assign, pay or transfer any of his property, or procure or suffer any of his property to be taken, attached or levied upon, or any lien or encumbrance to be acquired thereon by legal process or otherwise, such preferential transaction shall be void as against the assignee. The assignee may recover the property given by way of preference, or the value thereof, from the person so receiving the same or so benefited thereby. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-4 Assignor to acknowledge assignment for recording as deed

The assignor shall acknowledge the general assignment or cause the same to be proved according to law, so that it may be recorded as a deed to real estate. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-5 Assignor to annex inventory and list of creditors with their claims, to assignment

The assignor shall annex to the general assignment an inventory, under oath of his estate, real and personal, together with a list of his creditors and the amount of their respective claims according to the best of his knowledge. Such inventory shall in nowise be conclusive as to the quantum of the assignor's estate, and the assignee shall be entitled to any other property which may belong to the assignor at the time of the assignment. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-6 Legality of assignments

All general assignments for the benefit of creditors shall be made in accordance with the provisions of this chapter. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-7 Assignee to record and file assignment

2A:19-7. The assignee, upon receiving a general assignment, shall forthwith record it, including the inventory and list of creditors with their claims, in the county where the assignor resides and in any other counties or states where he may deem it necessary. The same shall be recorded in this State in the office of the register of deeds in counties having such an office and in the office of the county clerk in other counties. A copy of the same, executed by the assignor or certified by the register or county clerk, shall be filed by the assignee with the surrogate of the county where the assignor resides or with the clerk of the Superior Court. L.1951 (1st SS), c.344; amended 1991,c.91,s.71.

N.J. Stat. § 2A:19-8 Publication and mailing of notice; extension of time

The assignee shall also forthwith give public notice by advertising at least 4 times during 4 consecutive calendar weeks, once in each week in a newspaper printed in this state and circulating in the neighborhood where the creditors reside. Such notice shall make known that a general assignment has been made, and the date thereof, and shall set forth a general description of any business carried on by the assignor and the place where the same was so carried on, and that all claims of creditors against the estate must be presented under oath to the assignee within 3 months from the date of the general assignment, or be barred from participating in a dividend of said estate. The assignee shall also, within 30 days after the date of the general assignment, mail a copy of such notice to every creditor of the assignor, addressed to him at his usual post-office address, so far as the assignee can ascertain the same. In case of failure to give such notice, or mail the same as above provided, the court may extend and fix the time for the presentation of claims and the giving and mailing notice thereof as aforesaid. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-9 Assignee to file inventory and valuation

The assignee shall also forthwith file with the clerk of the court, under oath, a true inventory and valuation of the estate so far as it has come to his knowledge. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-10 Bond of assignee; additional security

The assignee shall, after filing the inventory and valuation, forthwith enter into bond in such amount as the court may fix, for the faithful performance of his trust. The bond shall be filed with the clerk of the court. In case at any time the security given by any assignee under this chapter shall be shown to be insufficient, the court shall direct him to give such additional security as it shall deem proper. Every bond given under this section shall run to the superior court. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-11 Assignee not to proceed until bond, etc., filed

Until the inventory, valuation and bond required by this chapter are filed, the assignee shall not proceed to the discharge of his trust under the general assignment, further than may be necessary for the preservation of the assigned estate; but the court, before such inventory, valuation and bond are filed, may authorize the assignee to perform such other acts in the administration of the trust, and upon such terms, as it may deem necessary for the protection of the trust. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-12 Exemption to assignor

In case of any general assignment, other than a general assignment of partnership property or by a corporation, there shall be reserved of the goods and chattels of any assignor having a family residing in this state, goods and chattels to the value of $500, and all wearing apparel for the use of the assignor and his family. The assignee shall, at the written demand of the assignor, as soon after the assignment is executed as conveniently may be, cause a just and true appraisement of the assignor's goods and chattels at their actual value. The appraisement shall be made by 2 appraisers appointed by the assignee. The assignee shall thereafter set apart for the use of the assignor and his family such of the goods and chattels as the assignor may select from the appraisement, not exceeding in value the said sum of $500. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-13 Assignee's general powers as successor to assignor

Every assignee shall have as full power and authority to dispose of all of the assignor's property, except as otherwise may be provided, as the assignor had at the time of the general assignment. He may sue for and recover in his own name everything belonging or appertaining to the estate. He may compromise, settle and compound all claims, disputes and litigations of the assignor, refer the same to arbitration, agree with any person concerning the same, redeem all mortgages and conditional contracts, and generally act as and do whatsoever the assignor might have lawfully done in the premises. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-14 Assignee's powers as representative of creditors; setting aside conveyances and transfers

The assignee, in addition to the powers which he may exercise as the successor to the assignor, shall also at all times be the representative of the creditors of the assignor, and shall have the same power to set aside conveyances, and to recover or reach assets for the benefit of the creditors as a creditor would have who was the holder of a judgment and levy against the assignor and his property at the date of the assignment. All conveyances, mortgages and transfers of property, real or personal, made by the assignor, which are void or voidable as against the creditors of the assignor, shall in like manner be void or voidable as against the assignee. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-15 Subpoena; commitment for failure to testify

The assignee may send for persons and papers and examine, on oath which he may administer, any persons, including the creditors and assignor, respecting the affairs, transactions and assets of the assignor, his debts, credits, obligations, contracts, and liabilities and claims asserted against the assignor. If any person shall refuse to be sworn or to answer the questions put to him, or refuse to declare the whole truth touching the subject matter of the examination, the court may, on report by the assignee, commit such person to prison, to remain until he shall have submitted himself to be examined and have paid all the costs of the proceedings against him. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-16 Continuing assignor's business

The court may, upon such notice to creditors as it may direct, authorize the assignee to continue for such a period and under such conditions as it may prescribe, any business of the assignor in which the assigned estate, or any part thereof, is invested. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-17 Action to compel assignee to perform duties

The court may, from time to time, compel the assignee to proceed to the execution of his duties. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-18 Assignee to sell real estate; manner of sale

Whenever any assignee shall take any real estate of the assignor under a general assignment, he shall, except as hereinafter provided, proceed to sell the same, at public or private sale, in the manner prescribed for an executor or administrator directed by the court to sell lands for the payment of the debts of a decedent. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-19 Assignee to submit sales of personalty for confirmation

The assignee shall submit all contracts for sale of personal property of the estate, whether by public or private sale, to the court for confirmation. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-20 Limitation of actions against assignee for taking or disposing of property

All actions at law or in equity which may be brought against any assignee on account of the taking, appropriating, selling or disposing of any property by him as a part of the trust estate, shall be commenced within 9 months from the time when the cause of action shall arise, and not afterwards. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-21 Reconveyance to assignor upon composition with creditors; proceedings

If after a general assignment the assignor shall make an agreement of compromise or composition with his creditors, the court may, if it confirms the agreement, authorize the assignee to reassign and reconvey to the assignor all the trust estate in his hands, in whatsoever form the same may be, free and discharged from the trust. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-22 Claims due or to become due are presentable

Any creditor may present not only any debt due, but any debt to become due, making in such case a reasonable rebate when interest is not accruing on the same. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-23 Claims filed after time share only in subsequent dividends

If any creditor shall fail to present his claim to the assignee within 3 months from the date of a general assignment, or within such other time as may be fixed by the court for that purpose, his claim shall be barred of a dividend, except that any creditor may, at any time prior to the making of a final dividend, present his claim under oath to the assignee, and share in any dividend made after such presentation. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-24 Claims filed after time; notice; exceptions; adjudication

Upon the presentation of any claim after time as authorized by section 2A:19-23 of this title, the assignee, before allowing the same, shall give notice thereof by mail to the other creditors who have proved their claims, as directed by section 2A:19-26 of this title in relation to claims proved in time. The claim shall be subject to the same exceptions by the assignee or the other creditors as a claim filed in time and may be adjudicated upon in like manner. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-25 Assignee to file list of creditors, statement of claims, and proof of notice

At the expiration of the time for the presentation of claims, notice having been duly given and mailed as provided in section 2A:19-8 of this title, the assignee shall file with the clerk of the court a true list, under oath, of all the creditors of the assignor who have proved their claims before him, with a true statement of their respective claims, and due proof of the publication and mailing of the notice above-mentioned. Such proof shall give in detail the names of the persons to whom, with the respective addresses to which, and the time when, such notices were mailed. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-26 Notice of filing such list and statement; proof of mailing

Within 10 days after the filing of the list of creditors and the statement of their claims, the assignee shall mail notice of such filing to every creditor who has proved his claim, addressed to the creditor at his usual post-office address, so far as the assignee can ascertain, and shall, within said 10 days, also file with the clerk of the court due proof of the mailing of such notice. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-27 Extending time for compliance with sections 2A:19-25 and 2A:19-26

In case of failure to comply with the provisions of sections 2A:19-25 and 2A:19-26 of this title, the court may extend and fix the time of any of the duties of the assignee which he may have failed to perform. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-28 Assignee's inventory, list of creditors and statement of claims to be proved and recorded

The inventory and list of creditors, with the statement of claims, as required by sections 2A:19-9 and 2A:19-25 of this title to be filed by the assignee, shall be recorded by the clerk of the court in a book provided for that purpose and called "assignee's book" . L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-29 Exceptions to claims

At any time within 60 days after the list of creditors and statement of claims have been filed and notice thereof has been mailed to the creditors, the assignee, or any creditor or other person interested, may file in the court exceptions to the allowance or rejection by the assignee of claim or demand of any creditor exhibited as aforesaid. The court may then adjudicate upon such claim or demand. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-30 Wages of clerks, mechanics, and laborers, preferred

The wages of clerks, mechanics and laborers due from the assignor at the time of the general assignment including wages fully earned though not then payable, shall be preferred and shall be paid by the assignee before any other claim or debt. In case any such wages have been partly earned at the time of the assignment, but are not then payable, the same shall be equitably apportioned and shall be paid as preferred debts insofar as they have been earned up to the said time. No payment of more than $300 shall be made as a preferred debt to any one person. In case any claim shall receive a preference to the extent of $300 under this section, any balance thereof remaining unpaid shall be entitled to all dividends to be calculated upon such balance as upon a claim of a general creditor. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-31 Landlord's lien on assignor's goods

Where the assignor is a tenant, all of his goods and chattels on the premises, in his possession, shall be subject to a lien for the payment of rent due to the landlord. The claim for rent in favor of the landlord, not exceeding 1 year's rent, shall be first paid and satisfied by the assignee out of the goods and chattels of the tenant which were on the demised premises at the time of the assignment. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-32 Landlord's rights where assignor's goods removed

If the tenant, his assignee, or any other person, shall remove any goods and chattels from the demised premises, after the assignment, the landlord, at any time within 40 days after such removal, may seize such goods and chattels in whosesoever hands the same may be found, as a distress for his rent, and proceed with the same in the manner directed by law concerning distresses, whether the rent by the terms of the lease be due or not, making a rebate on the sum not due, as is required where a party suing out execution pays rent not due to the landlord. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-33 Assignee to proceed to make dividends

If no exceptions to any claim or demand are filed, or in case any exceptions are filed, then after they have been adjudicated or settled, the assignee shall proceed to make, from time to time, fair and equal dividends among said creditors from the assets which shall come to hand in proportion to their claims. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-34 Partial distribution

The court, in its discretion, on the application of the assignee or any person in interest, from time to time, may direct such partial distribution from the assets in hand to those creditors whose claims are not in dispute as may safely be made, reserving at all times sufficient assets to secure, after all the claims shall have been adjudicated and finally settled, an equal and proportionate distribution according to the intent of this chapter. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-35 Directions as to dividends

The court may, in its discretion, upon application of the assignee, or of any person in interest, make directions with respect to any or all dividends, including the time when the same shall be made and the amount thereof. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-36 Death or incapacity of assignee; successor

In case the assignee shall die or become incapable of executing his trust the court shall, upon application of any person in interest, appoint some suitable person or persons in his stead. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-37 Removal for maladministration, neglect, or other cause; successor

In case any assignee shall embezzle, waste or misapply any part of the trust estate in his hands or under his control, or shall neglect or refuse to execute his trust, or to perform and obey any order or judgment of the court in respect of his trust, or shall remove from the state, or for a reasonable or just cause manifested to the court shall desire to be relieved from his office, then the court may remove the assignee and appoint a suitable person or persons in his stead. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-38 Estate vests in new assignee; accounting and delivery by predecessor

Upon the appointment of any new assignee as aforesaid, the entire trust estate, in whatsoever form the same then may be, shall forthwith vest in him. The court may compel the removed assignee, or the personal representative of the former assignee, to account in said court for his trust, to deliver possession of the estate in his hands to his successor, to pay over to such successor any balance found due on the accounting, and to execute such conveyance of the trust estate to his successor as the court may direct. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-39 Powers and duties of new assignee

Every new assignee shall have all the powers and rights and perform all the duties not already performed, conferred and imposed by the assignment or by law upon the original assignee. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-40 Bond of new assignee

Every new assignee shall enter into bond for the faithful performance of his trust, in such amount as the court shall fix. The bond shall run to the superior court. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-41 Final and intermediate accounts

As soon as may be after the determination of all claims, the assignee shall render, on oath, a final account to the court. The court may, in its discretion, upon the application of the assignee or any creditor, or the surety on the assignee's bond or other person in interest, direct the assignee to render an intermediate or final account. The settlement and judgment of the court shall be conclusive on all parties except for assets which may afterward come to hand, or except as relief may be had in a judgment in any action. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-42 Disposition of unclaimed money

2A:19-42. Disposition of unclaimed money. When an assignee states his final account, and there remains a balance, dividend sum or sum of money to be paid to a person and the person or his guardian, if he be under any disability, the balance, dividend sum or sum of money is intangible property remaining unclaimed in the possession of an assignee. After the period of time set forth in R.S.46:30B-37.1 has elapsed that property shall be presumed abandoned and handled in accordance with the "Uniform Unclaimed Property Act (1981)," R.S.46:30B-1 et seq. L.1951 (1st SS), c.344; amended 1989,c.58,s.2.

N.J. Stat. § 2A:19-43 Compensation of assignee

Such commissions shall be made to the assignee or to the personal representatives of a deceased assignee, or to a person who has been removed by the court from his office as assignee for any cause other than his misconduct, on any intermediate or final account, as the court shall consider just, but not in excess of 20% on all sums received by the said assignee, except that this limitation shall be inapplicable where the amount of the estate is less than $500.00. L.1951 (1st SS), c.344; amended by L.1963, c. 137, s. 1, eff. July 24, 1963.

N.J. Stat. § 2A:19-44 Any corporation may assign

Any corporation organized under the laws of this state may make a general assignment under the provisions of this chapter. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-45 Corporation deemed resident of what county

2A:19-45. A corporation making a general assignment shall be deemed, for the purposes of this chapter, a resident of the county in which its principal office is located. L.1951 (1st SS), c.344; amended 1991,c.91,s.72.

N.J. Stat. § 2A:19-46 Assignee as party to receivership suit

The assignee may be made a party to any action in the superior court to have the corporation adjudged insolvent and a receiver thereof appointed, and may be enjoined, restrained and removed in such action and subjected to all orders and judgments therein. The said court may, if it sees fit, appoint the assignee of the corporation receiver thereof. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-47 Removal of assignee and transfer of estate to receiver

2A:19-47. In case a corporation shall, at any time after the making of a general assignment, be adjudged insolvent and a receiver thereof be appointed by the Superior Court, the said court may, whenever it may deem it to the interest of the stockholders or creditors, remove the assignee and direct and compel him to transfer and convey the trust estate in his hands to the receiver to be administered under the direction of said court. The assignee shall thereupon present his accounts to the Superior Court for settlement and allowance. L.1951 (1st SS), c.344; amended 1991,c.91,s.73.

N.J. Stat. § 2A:19-48 Inclusion of individual estate

When a general assignment is made by partners in business, it may include only the partnership property or it may include also the several estates of the partners; or any of the partners may also make a separate general assignment of his individual estate. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-49 Partnership and individual estates to be kept separate

In all cases where a general assignment includes both a partnership and an individual estate, the same shall be kept separate in all proceedings under this chapter, and all notices and accounts in relation thereto shall plainly distinguish between the different estates, and all proceedings, orders and judgments shall recognize the rights and equities of the different classes of creditors, to the end that the property assigned may be equitably applied to the payment of the claims of such creditors. L.1951 (1st SS), c.344.

N.J. Stat. § 2A:19-50 One partner to reside in State

2A:19-50. In order to bring a general assignment of partners in business within the operation of this chapter, it shall be sufficient if any one of them resides in this State. L.1951 (1st SS), c.344; amended 1991,c.91,s.74.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026