2012 Arkansas Code
Title 16 - Practice, Procedure, And Courts
Subtitle 7 - Particular Proceedings And Remedies
Chapter 117 - Receivership
Subchapter 4 - -- Assignments for Benefit of Creditors
§ 16-117-402 - Actions contesting assignment.
(a) All proceedings for the purpose of contesting the validity of the assignment shall be instituted within six (6) months from the date of the assignment, by filing complaint in the circuit court of the proper county, setting forth the grounds upon which the assignment is contested.
(b) Any creditor or person interested in the execution of the assignment may be made parties plaintiff or defendant to the proceeding.
(c) If, for any cause, the assignment is declared void, the assignment shall then be considered and treated as a general assignment of all his or her property, not exempt from execution, for the benefit of all his or her creditors pro rata. The property shall be disposed of and distributed for their benefit under the orders and direction of the court. The assignee shall become subject to the control and direction of the circuit court in the same manner as if he or she had been appointed a receiver to take charge of the fund in court.
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