Explanation

Following are the advantages of liquidation by assignment -

The assignment gives the assignee more flexibility in the disposal of the assets, which helps in the timely completion of the procedure.
Assignment helps creditors receive much better amounts for their claims as the assignee is familiar with the business, which helps achieve better results.
Less legal formalities are involved in an assignment as compared to a formal bankruptcy liquidation.
Fewer expenses are incurred in the assignment procedure due to less legal formalities and more flexibility of the assignee. Legal formalities lead to administrative costs, legal fees, investigative costs, which are saved through informal liquidation through the assignment.

Verified Answer

Following are the advantages of liquidation by assignment -

Assignment helps in the timely completion of the procedure.
The assignment leads to achieving better results.
Less legal formalities are involved in an assignment as compared to a formal liquidation procedure.
Fewer expenses are incurred in the assignment procedure.