Assignments for the Benefit of Creditors: Florida | Practical Law

assignment for the benefit of creditors florida statute

Assignments for the Benefit of Creditors: Florida

Practical law state q&a w-023-1232  (approx. 21 pages).

Jimerson Birr, P.A.

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Pursuing Assignments for the Benefit of Creditors

  • Pursuing Assignments for the Benefit of Creditors
  • Pursuing Assignments for the Benefit of Creditors Overview
  • Bankruptcy and Restructuring
  • Security Agreements and UCC Filings in Bankruptcy
  • Acquiring Assets from Bankruptcy Estates and Distressed Borrowers
  • Workout, Refinancing, and Restructuring Opportunities Outside of Bankruptcy
  • Representing Creditors in Bankruptcy Court and Pre-Petition Negotiations
  • Debtor-in-Possession Financing and Cash Collateral
  • Preventing Debtor Bankruptcy Through Liquidation, Restructuring, and Reorganization
  • Proofs of Claim
  • Estate Disputes Over the Treatment of Differing Creditor Claims, Transfer Avoidance, Breach of Fiduciary Duty, and Alter Ego Liability
  • Reconciling Creditors Committee Interests to Avoid Litigation and Expedite Recovery
  • Litigating Parasitic State Court Claims on Behalf of the Estate
  • Adversary Proceedings to Set Aside Preference Payments and Fraudulent Transfers
  • Creditors’ Committees and Trustees
  • Defending Against Involuntary Bankruptcy Petitions
  • Advising Insolvent Companies on Fiduciary Duties and Winding Down
  • Establishing a Restructuring Agenda
  • Recovering from Non-Debtor Entities
  • Filing Involuntary Bankruptcy Petitions
  • Foreclosure or Repossession During Bankruptcy
  • The Impact of Commercial Reorganization on Creditors
  • Assigning Bankruptcy Claims to Claims Traders
  • Trade Supplier Relations with Financially Distressed Customers
  • Creditor’s Committees and Trustees
  • Adversary Proceedings in Bankruptcy
  • Relief from the Automatic Stay
  • Bankruptcy Defense: Fraudulent Transfers and Preferential Payments

What are assignments for the benefit of creditors?

Assignments for the benefit of creditors (ABCs) are an alternative to formal bankruptcy proceedings. Under Florida law, an ABC is a voluntary, out-of-court process where a debtor transfers their assets to an assignee, who then liquidates these assets and distributes the proceeds to the debtor’s creditors.

For example, a struggling business in Florida may pursue an ABC instead of filing for bankruptcy. This choice can be advantageous because it is often faster, less expensive, and less public than a formal bankruptcy filing. The business would transfer its assets to an assignee responsible for selling these assets and distributing the proceeds to the creditors following the priorities established by Florida law.

Need a bankruptcy law advocate? Schedule your consultation today with a top bankruptcy and restructuring attorney.

Which Florida laws and regulations apply to assignments for the benefit of creditors?

The primary source of law governing ABCs in Florida is Chapter 727 of the Florida Statutes . This chapter outlines the process for initiating an ABC, the assignee’s role, and the creditors’ rights. Additionally, the Florida Rules of Civil Procedure may apply to certain aspects of an ABC, such as serving notice to creditors and managing creditor claims.

Federal laws, such as the Bankruptcy Code , generally do not apply to ABCs because they are state law alternatives to bankruptcy. However, it is essential to note that federal laws may still impact an ABC in certain situations, such as when a debtor’s assets are subject to federal tax liens or other federal claims. In these cases, debtors must consult a knowledgeable attorney to navigate the interplay between state and federal laws.

How do assignments for the benefit of creditors connect to the bankruptcy process?

The connection between pursuing an ABC and bankruptcy legal services for debtors lies in their shared goal of providing relief to financially distressed individuals or businesses. Both processes involve the liquidation of assets and the distribution of proceeds to creditors. However, ABCs are generally less formal, less expensive, and more private than bankruptcy filings, making them an attractive option for debtors seeking to avoid the stigma and complexities associated with bankruptcy.

In an ABC, a debtor voluntarily transfers their assets to an assignee who liquidates them and distributes the proceeds to creditors. This process differs from a bankruptcy proceeding, where a court-appointed trustee oversees the operation. Furthermore, while strict federal rules and procedures bind bankruptcy cases, ABCs offer more flexibility, allowing parties to tailor the process to their needs.

When a set of facts is appropriate for bankruptcy services, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation or another form of specialized bankruptcy advocacy, please contact our office to set up your initial consultation.

What are the prerequisites for debtors to pursue assignments for the benefit of creditors?

Consider the following:

  • Voluntary action: The debtor must willingly initiate an ABC, as this process is a voluntary alternative to bankruptcy.
  • Valid assignment: The debtor must properly execute and deliver the assignment to a qualified assignee, who is often an attorney, accountant, or insolvency professional.
  • Recording the assignment: The assignee must record the assignment in the county’s public records containing the debtor’s principal place of business.
  • Filing notice: The assignee must file a notice of the assignment with the circuit court clerk in the county where the debtor recorded the assignment.
  • Notifying creditors: The assignee must provide written notice to all known creditors of the debtor within 20 days of the assignment, informing them about the ABC process and their rights.

By satisfying these requirements, the debtor can effectively pursue an ABC in Florida, which allows for a more personal and flexible approach to resolving financial difficulties compared to bankruptcy.

Please contact our office to set up your initial consultation to see what forms of legal protection and advocacy may be available for your unique situation.

Frequently Asked Questions

  • Can a debtor choose any person as an assignee for an ABC?

No, not just anyone can be an assignee. The assignee must be a disinterested person who is not an insider of the debtor and is qualified to manage the debtor’s assets and affairs. Assignees are typically professionals, such as attorneys, accountants, or insolvency experts.

  • Does an ABC in Florida prevent creditors from pursuing legal action against the debtor?

Unlike bankruptcy, an ABC does not automatically halt legal actions by creditors. However, creditors may agree to a standstill or moratorium on legal actions while the ABC process is ongoing. This outcome may depend on the specific circumstances and the willingness of the creditors to cooperate.

  • How does an ABC affect the debtor’s credit rating?

Although an ABC may be less public and stigmatizing than bankruptcy, it can still harm the debtor’s credit rating. Credit reporting agencies may treat an ABC as a similar event to a default, which can lower the debtor’s credit score and make it more difficult for them to obtain future credit or loans. However, the impact on the credit rating may vary depending on the specific circumstances of the case and the debtor’s credit history before the ABC. Therefore, debtors must work closely with financial advisors and credit counselors to rebuild their credit after an ABC process.

Have more questions about how bankruptcy services could positively impact your business operations and relationships?

Crucially, this overview of assignments for the benefit of creditors does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation .

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Florida Statutes > Chapter 727 – General Assignments

Terms used in florida statutes > chapter 727 - general assignments.

  • Amendment : A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Assessment : means a share of the funds which are required for the payment of common expenses, which from time to time is assessed against the unit owner. See Florida Statutes 718.103
  • Asset : means a legal or equitable interest of the assignor in property, which includes anything that may be the subject of ownership, whether real or personal, tangible or intangible, including claims and causes of action, whether arising by contract or in tort, wherever located, and by whomever held at the date of the assignment, except property exempt by law from forced sale. See Florida Statutes 727.103
  • Assets : (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Assignee : means a natural person solely in such person's capacity as an assignee for the benefit of creditors under the provisions of this chapter, which assignee shall not be a creditor or an equity security holder or have any interest adverse to the interest of the estate. See Florida Statutes 727.103
  • Assignment : means an assignment for the benefit of creditors made under this chapter. See Florida Statutes 727.103
  • Assignor : means the person or entity that has executed and delivered the assignment to the assignee. See Florida Statutes 727.103
  • Association : means , in addition to any entity responsible for the operation of common elements owned in undivided shares by unit owners, any entity which operates or maintains other real property in which unit owners have use rights, where membership in the entity is composed exclusively of unit owners or their elected or appointed representatives and is a required condition of unit ownership. See Florida Statutes 718.103
  • Association property : means that property, real and personal, which is owned or leased by, or is dedicated by a recorded plat to, the association for the use and benefit of its members. See Florida Statutes 718.103
  • Attachment : A procedure by which a person's property is seized to pay judgments levied by the court.
  • board : means the board of directors or other representative body which is responsible for administration of the association. See Florida Statutes 718.103
  • Buyer : means a person who purchases a condominium unit. See Florida Statutes 718.103
  • Bylaws : means the bylaws of the association as they are amended from time to time. See Florida Statutes 718.103
  • Claims bar date : means the date that is 120 days after the date on which the petition is filed with the court. See Florida Statutes 727.103
  • Common elements : means the portions of the condominium property not included in the units. See Florida Statutes 718.103
  • Common expenses : means all expenses properly incurred by the association in the performance of its duties, including expenses specified in…. See Florida Statutes 718.103
  • Complaint : A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Condominium : means that form of ownership of real property created pursuant to this chapter, which is comprised entirely of units that may be owned by one or more persons, and in which there is, appurtenant to each unit, an undivided share in common elements. See Florida Statutes 718.103
  • Condominium parcel : means a unit, together with the undivided share in the common elements appurtenant to the unit. See Florida Statutes 718.103
  • Condominium property : means the lands, leaseholds, and personal property that are subjected to condominium ownership, whether or not contiguous, and all improvements thereon and all easements and rights appurtenant thereto intended for use in connection with the condominium. See Florida Statutes 718.103
  • Consensual lienholder : means a creditor that has been granted a security interest or lien in personal property or real property of the assignor prior to the date on which a petition is filed with the court and whose security interest or lien has been perfected in accordance with applicable law. See Florida Statutes 727.103
  • Conspicuous type : means bold type in capital letters no smaller than the largest type, exclusive of headings, on the page on which it appears and, in all cases, at least 10-point type. See Florida Statutes 718.103
  • Contract : A legal written agreement that becomes binding when signed.
  • Court : means the circuit court where the petition is filed in accordance with…. See Florida Statutes 727.103
  • Creditor : means any person having a claim against the assignor, whether such claim is contingent, liquidated, unliquidated, or disputed. See Florida Statutes 727.103
  • Damages : Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • declaration of condominium : means the instrument or instruments by which a condominium is created, as they are from time to time amended. See Florida Statutes 718.103
  • Deed : The legal instrument used to transfer title in real property from one person to another.
  • Defendant : In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Developer : means a person who creates a condominium or offers condominium parcels for sale or lease in the ordinary course of business, but does not include: (a)  An owner or lessee of a condominium or cooperative unit who has acquired the unit for his or her own occupancy; (b)  A cooperative association that creates a condominium by conversion of an existing residential cooperative after control of the association has been transferred to the unit owners if, following the conversion, the unit owners are the same persons who were unit owners of the cooperative and no units are offered for sale or lease to the public as part of the plan of conversion; (c)  A bulk assignee or bulk buyer as defined in…. See Florida Statutes 718.103
  • Discovery : Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Division : means the Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation. See Florida Statutes 718.103
  • Docket : A log containing brief entries of court proceedings.
  • Equitable : Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages . A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction . In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Escrow : Money given to a third party to be held for payment until certain conditions are met.
  • Estate : means all of the assets of the assignor. See Florida Statutes 727.103
  • Evidence : Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fee simple : Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
  • Filing date : means the date upon which the original petition is filed in accordance with…. See Florida Statutes 727.103
  • Foreclosure : A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Grantor : The person who establishes a trust and places property into it.
  • Jurisdiction : (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Land : means the surface of a legally described parcel of real property and includes, unless otherwise specified in the declaration and whether separate from or including such surface, airspace lying above and subterranean space lying below such surface. See Florida Statutes 718.103
  • Lease : A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Liabilities : The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Lien : A claim against real or personal property in satisfaction of a debt.
  • Lien : means a charge against or an interest in property to secure payment of a debt or performance of an obligation, and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien. See Florida Statutes 727.103
  • Limited common elements : means those common elements which are reserved for the use of a certain unit or units to the exclusion of all other units, as specified in the declaration. See Florida Statutes 718.103
  • Liquidation value : means the value in cash obtainable upon a forced sale of assets after payment of valid liens encumbering said assets. See Florida Statutes 727.103
  • Litigation : A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Mortgage : The written agreement pledging property to a creditor as collateral for a loan.
  • Multicondominium : means real property containing two or more condominiums, all of which are operated by the same association. See Florida Statutes 718.103
  • Negative notice : means notice as set forth in…. See Florida Statutes 727.103
  • oath : includes affirmations. See Florida Statutes 1.01
  • Oath : A promise to tell the truth.
  • Obligation : An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • operation of the condominium : includes the administration and management of the condominium property and the association. See Florida Statutes 718.103
  • person : includes individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations, and all other groups or combinations. See Florida Statutes 1.01
  • Personal property : All property that is not real property.
  • Petition : means the initial document filed with the court, as set forth in…. See Florida Statutes 727.103
  • Pleadings : Written statements of the parties in a civil case of their positions. In the federal courts, the principal pleadings are the complaint and the answer.
  • Prosecute : To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
  • Real property : Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • registered mail : include certified mail with return receipt requested. See Florida Statutes 1.01
  • Rental agreement : means any written agreement, or oral agreement if for less duration than 1 year, providing for use and occupancy of premises. See Florida Statutes 718.103
  • Rescission : The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • Residential condominium : means a condominium consisting of two or more units, any of which are intended for use as a private temporary or permanent residence, except that a condominium is not a residential condominium if the use for which the units are intended is primarily commercial or industrial and not more than three units are intended to be used for private residence, and are intended to be used as housing for maintenance, managerial, janitorial, or other operational staff of the condominium. See Florida Statutes 718.103
  • Settlement : Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Structural integrity reserve study : means a study of the reserve funds required for future major repairs and replacement of the condominium property performed as required under…. See Florida Statutes 718.103
  • Tort : A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Unit : means a part of the condominium property which is subject to exclusive ownership. See Florida Statutes 718.103
  • Voting interests : means the voting rights distributed to the association members pursuant to…. See Florida Statutes 718.103
  • writing : includes handwriting, printing, typewriting, and all other methods and means of forming letters and characters upon paper, stone, wood, or other materials. See Florida Statutes 1.01

assignment for the benefit of creditors florida statute

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Thomas L. Abrams P.A.

Bankruptcy | Commercial Litigation & Appeals | South Florida

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Gamberg & Abrams

Assignment for Benefit of Creditors

Bankruptcy is not the only option for companies that face insolvency. Florida companies can use the state's Assignment for the Benefit of Creditors (ABC) statute as an alternative to bankruptcy.

Instead of letting a bankruptcy trustee sell a company's assets in order to pay off creditors, the Assignment for the Benefit of Creditors statute allows businesses to transfer assets to an assignee. This person or organization liquidates the assets and divides the proceeds among the creditors in order of priority as set forth in the Florida Statutes. The assignee is responsible for managing the assets appropriately during the process of liquidation.

Liquidating assets through Assignment for Benefit of Creditors can be less expensive and quicker than a bankruptcy. It also allows the company to control the timing of the asset sales. It even allows the assignee to sell the business as a going concern, if that is in the best interests of the creditors.

Thomas L. Abrams in Fort Lauderdale is available to represent participants in an ABC proceeding, including:

» The company that needs to be liquidated » The assignee who is responsible for managing and selling the assets » Individuals or businesses who wish to purchase liquidated assets or the company itself » Creditors who are seeking payment of debt through the ABC process

We will evaluate your specific circumstances, needs and goals and advise you whether an Assignment for Benefit of Creditors proceeding makes sense in your case.

To learn if we can be of assistance, please contact the lawyers of Thomas L. Abrams, in Fort Lauderdale, Florida. Thomas L. Abrams represents clients throughout the South Florida area (Broward, Miami-Dade and West Palm Beach Counties) in ABC cases and all aspects of insolvency matters.

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  • Assignment for the Benefit of Creditors

Helping Florida business owners exit gracefully and move on with less time and hassle than bankruptcy

An assignment for the benefit of creditors (ABC) is one way for an insolvent company to wind down its operations in an orderly fashion. Like a Chapter 7 business bankruptcy, an ABC involves selling the company’s assets and using the proceeds to pay off creditors, but without the stigma of a bankruptcy on their credit report or the mind of the public.

The business attorneys at Edelboim Lieberman have successfully helped many South Florida companies with an assignment for the benefit of creditors. Learn more about ABCs below, and call Edelboim Lieberman in Miami or Fort Lauderdale to find out if an ABC is right for you.

How does an ABC work?

The owner of the company (the assignor) makes an assignment, or transfer, of company assets and debts to another company or law firm (the assignee). The assignee is then responsible to sell the assets and use the proceeds to pay off the creditors. By using an ABC, the assignor gets to move on quickly from the insolvent company without having to personally go through the process of liquidating assets and paying creditors or going through the Chapter 7 bankruptcy process.

ABCs Under Florida Law

Unlike a Chapter 7 bankruptcy, which takes place in federal bankruptcy court and is supervised by a federal bankruptcy trustee, ABCs are filed in and supervised by the Florida state courts. Florida Statutes Chapter 727 governs an assignment for the benefit of creditors.

Following are some important points about the way ABCs operate in Florida:

  • ABCs must be in writing. Florida statutes provide a sample form of assignment; the ABC should be in substantially the same form.
  • An ABC represents an irrevocable assignment.
  • The assignee files the assignment with the court, publishes a notice of the assignment as required by law and also notifies creditors of the assignment.
  • In certain situations, the assignee can carry on the business for a period to maximize return.
  • The assignee can reject an unexpired lease.
  • The assignee can hire professionals as needed, such as accountants, appraisers, auctioneers, and attorneys, to assist in the liquidation of assets.
  • The assignee can examine the validity and priority of claims and litigate disputed claims.
  • The assignee can sue to enforce claims the assignee may have by virtue of the assignment or assign a cause of action to another party.
  • The assignee must file interim and final reports with the court.
  • Any monies left over after creditors are paid goes back to the assignor.

Is an ABC better than bankruptcy?

An ABC liquidates assets and winds down business operations similar to a Chapter 7 bankruptcy, and an ABC is conducted under court supervision like Chapter 7. However, an ABC can offer advantages over Chapter 7 in many instances. Importantly, an assignee typically gets a greater return when selling assets since the assignee is frequently knowledgeable about the industry and is often a skilled and experienced negotiator. Additionally, an assignee can continue to run the business as a going concern for a while and even sell it as such, which a bankruptcy trustee won’t do.

ABCs also offer more privacy to the assignor, as opposed to going through the public court filings of a bankruptcy. And the ABC is faster for the assignor. The assignor makes the assignment and is done, rather than going through bankruptcy which can take months or years depending on the assets to be liquidated.

On the other hand, an assignor does not get the benefit of the automatic stay afforded by bankruptcy, which might encourage a company to file for bankruptcy instead. Yet one could argue there is no reason a creditor would go after an assignor after the ABC has been executed, knowing the assignor no longer has assets. Generally speaking, ABCs are usually a less litigious process than Chapter 7 for businesses.

Is an ABC right for me?

If you have racked up a large amount of debt with a lot of different creditors and you see that your business is not going to make it, an assignment for the benefit of creditors might be the smart move. Especially if you have a large number of assets, liquidating the business to pay off your creditors can take months or even years. An ABC lets you transfer all your assets and debts at once, allowing you to move on immediately while the assignee takes on the burden of handling the liquidation and paying off creditors.

Since there are pros and cons to both Chapter 7 bankruptcy and ABCs, and there may be other unexplored alternatives as well, the best thing to do is sit down with an experienced business bankruptcy attorney to analyze your situation and look at all your options, so you can choose the best path forward that makes sense for you.

Get Help Today With an Assignment for the Benefit of Creditors in Miami and South Florida

For help with an Assignment for the Benefit of Creditors or other aspects of business bankruptcy in South Florida, contact Edelboim Lieberman at their offices in Miami and Fort Lauderdale by calling 305-768-9909 for a no-cost, confidential consultation.

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  • Morgan B. Edelboim
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Equity Development Systems, Ltd. | Wall Street Smarts...Main Street Sense™

Florida Assignment for the Benefit of Creditors Services

Wall street smarts … main street sense™, a symphony of wall street smarts … main street sense™ florida assignment for the benefit of creditors services (abc) | general assignment | creditor assignment.

A Florida Assignment for the Benefit of Creditors (ABC) or General Assignment/Creditor Assignment can be a prudent alternative to bankruptcy for maximizing value for troubled private and public companies and their creditors.

An Assignment for the Benefit of Creditors (ABC) is a legal process in which a debtor assigns all of its assets to an independent third party, called an assignee, that’s us, to liquidate the assets and pay off the creditors. This process is a bankruptcy alternative, and it allows a debtor to avoid the lengthy and costly bankruptcy process while still getting relief from creditors.

For over 40 years in assignments worldwide, Equity Development Systems, Ltd has brought A Symphony of Wall Street Smarts … Main Street Sense ™ in skillfully guiding and judiciously representing business owners, creditors, investors, attorneys and law firms, and myriad other stakeholders in the disposition of their troubled accounts.

From National Priority List Superfund Sites—to a Decommissioned Nuclear-Powered Aircraft Carrier—to the Pencils-on-the-Desk—we handle it all, and we have successfully managed and generated Billions of Dollars  for our global clientele in the conversion of their distressed assets to cash.

Award-Winning Services Our award-winning Receivership Services have earned us the distinction of being the only Court-Appointed Receiver in the country that the United States Environmental Protection Agency (USEPA) allows to conduct Asset Recovery and Divestiture Services on active Superfund Sites. We are pleased to serve as Court-Appointed Keepers (Asset Recovery) for the U.S. Marshals Service for federal court seizures of assets under admiralty jurisdiction.

We handle it all commercial | industrial | residential real estate developments | hoa and golf communities/resorts | environmentally impaired real and moveable property | hospitality/gaming | shipyards/admiralty/maritime | aviation (fixed and rotor) | automotive (manufacturing and retail) | heavy industrial manufacturing | oil & gas/minerals | and more..., 24/7/365 onsite crisis / interim / turnaround management teams our turnaround management and restructuring teams marshal onsite 24/7/365 throughout the world to provide the complete spectrum of crisis/interim and turnaround management services., testimonials, the actions undertaken on behalf of signal capital have established a level of confidence that has resulted in epa allowing signal to dispose of movable property on the facility in a way that most secured creditors would ordinarily not enjoy. in fact, i know of no other analogous situation where the epa region 6 removal program has cooperated with a secured creditor to the extent it has due to your efforts., senior attorney.

USEPA, Region 6

Such a relationship generally does not develop whereby EPA would permit a secured creditor to liquidate uncontaminated movable property due to the realistic concern that such actions would aggravate existing environmental problems or would interfere with EPA’s removal action. It is not at all unusual that in EPA’s proper exercise of its CERCLA responsibilities such accommodations are flatly rejected.

Notwithstanding that general approach, you have demonstrated a level of responsibility and credibility that has warranted a different approach for epa in this matter., florida assignment for the benefit of creditors services — statewide, maximizing value for all stakeholders, general assignments florida statutes title xli, chapter 727.

The process of an Assignment for the Benefit of Creditors is initiated by the distressed entity (assignor) entering into an agreement with the assignee, that’s us, responsible for conducting the wind-down and divestiture of the assets or sale of the business in a fiduciary capacity for the benefit of the assignor’s creditors. The assignment agreement is a contract under which the assignor transfers all of its right, title, and interest in, and custody and control of its property to the assignee in trust. The assignee divests the property and distributes the proceeds to the assignor’s creditors.
Our award-winning services have earned us the distinction of being the only Court-Appointed Receiver/Assignee in the country that the United States Environmental Protection Agency (USEPA) allows to conduct such services on active Superfund Sites.
We are pleased to serve as Court-Appointed Keepers (Assignee) for the U.S. Marshals Service for federal court seizures of assets under admiralty jurisdiction.

A Florida Assignment for the Benefit of Creditors (ABC) is a legal process in which a debtor assigns all of its assets to an independent third party, called an assignee, for the purpose of liquidating the assets and paying off the creditors. This process is an alternative to bankruptcy, and it allows a debtor to avoid the lengthy and costly bankruptcy process while still getting relief from its creditors.

The debtor will appoint an assignee, that’s us, who will take possession of all the assets of the debtor and will be responsible for liquidating them and distributing the proceeds to the creditors according to the priority of their claims. We will then be responsible for identifying, collecting, and liquidating all assets, and for making payments to the creditors.

The ABC process is usually faster than bankruptcy and it allows the debtor to have more control over the liquidation process. It also provides a way for the debtor to avoid the negative impact of a bankruptcy filing on its credit rating. However, there are also some limitations to the ABC process, such as a lack of protection from certain types of claims and a lack of automatic stay to halt litigation against the debtor.

An Assignment for the Benefit of Creditors Florida requires highly-trained—highly skilled—highly credentialed—highly experienced special assets and special situations transitional management, valuation, and disposition experts with decades of proven experience and unimpeachable credibility.

For over 40 years in hundreds of assignments worldwide, Palm Beach-based Equity Development Systems, Ltd has skillfully guided and judiciously represented business owners, creditors, investors, attorneys and law firms, and myriad other stakeholders in the disposition of their troubled accounts.

From National Priority List Superfund Sites—to a decommissioned nuclear-powered aircraft carrier—to the pencils-on-the-desk—we handle it all, and we have successfully managed and generated  Billions of Dollars  for our global clientele in the conversion of their distressed assets to cash.

We specialize in handling the disposition of complex and highly contentious special assets and special situations: Environmentally Impaired Real and Moveable Property (Superfund and Brownfields Sites), Hospitality, Gaming, Resorts, Shipyards/Admiralty/Maritime, Aviation (Fixed and Rotor), Automotive (Manufacturing and Retail), Heavy Industrial, Oil & Gas/Minerals, Commercial and High-Value Residential Real Estate.

No assignment is too small or too large for EDS.

The process of a Florida Assignment for the Benefit of Creditors

The basic process in a Florida Assignment for the Benefit of Creditors is that the business (Assignor) turns over its assets, both real and moveable, to an independent third-party neutral (Assignee [EDS]) who is the responsible fiduciary for divesting the assets and settling with creditors.

An Assignment for the Benefit of Creditors is a voluntary and arms-length transaction that provides a speedy, orderly disposition and equitable liquidation of the firm’s assets and subsequent distribution to its creditors. It is similar to a Chapter 7 liquidation process but is far quicker and much less expensive and, therefore, generally derives a larger distribution to all creditors.

EDS experts marshal on-site 24/7/365 throughout the State of Florida to secure and operate troubled accounts facing operational or financial challenges. Our experts work diligently with all stakeholders to preserve, protect, maintain, and enhance the enterprise value of the business and business assets that might otherwise be lost during costly and fruitless bankruptcies.

Assets Held in Trust:  By operation of law, all assets are held in trust upon acceptance of the Assignment. These assets and the funds realized therefrom are protected against creditor claims. The assets are then liquidated, and the proceeds, less administrative expenses, are distributed to all creditors according to their lawful priority class. The order of priority is very similar to that used by the Trustee in a bankruptcy proceeding.

Duties of the Assignee:  The Assignee has similar duties to a Trustee in Bankruptcy. The Assignee is charged with acting in a business-like manner in the disposition of the assets. The Assignee has considerable flexibility in the methods used and does not have to obtain consent or have a hearing to ratify his or her actions.

Fees:  Unlike Bankruptcy, no upfront fees are required. The fee amount is determined before signing the documents and becoming part of the General Assignment agreement. The fees for the Assignee are paid as an administrative expense from the proceeds recovered.

Advantages of an Assignment for the Benefit of Creditors or Creditor/General Assignment:  An  Assignment  does not require court adjudication or consent in most states, nor does it require the consent of creditors. It does not have the stigma of bankruptcy and frequently benefits the company’s principals, who nearly always guarantee the lender obligations of the company. Because an Assignment avoids the administrative procedures that govern bankruptcy, there is a considerable reduction in the cost of disposition and the time necessary to sell the assets. The consequence is greater flexibility in divestiture methods and options, resulting in greater returns for creditors. An Assignment for the Benefit of Creditors is an option that should always be considered as an option to bankruptcy.

EDS’s unparalleled level of Florida Assignment for the Benefit of Creditors expertise is recognized and appreciated statewide. 

How may we be of service to you?

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Fighting Bank of America Lawsuits- Where is the Debt‪?‬ Law and Lawyering Unplugged

It's Creditor Defense Week and Brian shows you how you might want to come right in on creditor cases with the securitization defenses which really emphasize that there are missing assignments to and from the secured trust such that the creditor can't have Standing To Sue you without those assignments. Notice also that creditor lawsuits don't actually say the would "debt" in them but replace it with the word "account." Cause they are not suing you for the debt but just the rights to an accounting of the amount owed. Look up the definitions of "account" and "debt" and see that the "debt" is long gone. Good luck fighting the bad guys.  For all documents and forms please visit the NEW membership website at www.collectionstoppermembership.com A Guide to Collection Self Defense: Book 1 - Writing a Killer Answer to a Lawsuit is OUT NOW! - https://www.amazon.com/dp/B0CRY279DR Podcast + has been moved to a Membership site so that revenue can be used to bring consumers more information, documents and greater assistance. The Podcast+ website is a lot of work and requires time and money spent on it that limits the maximum amount of information and resources I can give you. Please remember that anyone viewing or listening to this information, podcast and/or video is not being invited to create an attorney client relationship in any way. This is strictly informational to assist anyone who needs to be pointed in a direction similarly as one would do any research. Though I am a proud member of the State Bars of Florida and Michigan, this is a source of research and insight into how Brian Parker's mind operates and how he perceives the practice of law when it is used for the benefit of victims Mr. Parker does represent. Take what you need knowing I am not practicing law for you or anyone else in any state through this medium or media. I am sharing and caring.  BPP   Website: https://www.collectionstopper.com/ Facebook: @collectionstopper   Membership: https://collectionstoppermembership.com/ #lawyer           #law            #collectionstopper          #debt           #court          #howto          #help          #gettingstarted          #sharingiscaring          #free          #membership

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IMAGES

  1. assignment for the benefit of creditors, state court receiverships,and

    assignment for the benefit of creditors florida statute

  2. Statement Regarding Creditors

    assignment for the benefit of creditors florida statute

  3. General Assignments for the Benefit of Creditors: The ABCs of ABCs (5th

    assignment for the benefit of creditors florida statute

  4. General Form of Assignment to Benefit Creditors

    assignment for the benefit of creditors florida statute

  5. Alltrue has officially filed for Assignments for the Benefits of

    assignment for the benefit of creditors florida statute

  6. Florida Money Services Bond: A Comprehensive Guide

    assignment for the benefit of creditors florida statute

VIDEO

  1. Your Rental Rights: Understanding Florida Statute 83.56

  2. assignment benefit rule

  3. FDCPA Section 811

  4. Notice to Debtor That Course on Financial Management is Required to Receive Discharge

  5. How do I protect my home from creditors in Florida?

  6. What is Florida Statute 83?

COMMENTS

  1. Statutes & Constitution :View Statutes : Online Sunshine

    (2) "Assignee" means a natural person solely in such person's capacity as an assignee for the benefit of creditors under the provisions of this chapter, which assignee shall not be a creditor or an equity security holder or have any interest adverse to the interest of the estate.

  2. PDF Assignments for the Benefit of Creditors: Florida

    What are the applicable statutes for an assignment for the benefit of creditors (ABC) in your jurisdiction? In Florida, the ABC statutes are relatively comprehensive and provide rules for: Commencing proceedings (§ 727.104, Fla. Stat.). Turnover of assets (§ 727.106, Fla. Stat.). Assignor's duties (§ 727.107, Fla. Stat.).

  3. Florida Legislature Overhauls Assignment for the Benefit of Creditors

    The Supreme Court affirmed the DCA, concluding that, only in cases where the public was misled, a legal malpractice cause of action was appropriately assignable to an assignee for the benefit of creditors, as liquidator of the assignor. The new definition of "asset" provided under F.S. §727.103 (1) clearly embraces the result in Cowan.

  4. Primer on Florida's Assignment for Benefit of Creditors ...

    — Sardi Law Primer on Florida's Assignment for Benefit of Creditors: What are they? ABC Assignment for Benefit of Creditors Assignor Assignee An assignment for the benefit of creditors is one of the vehicles utilized to liquidate a failed or no longer viable business under state law.

  5. Florida Bar Journal

    The recent legislative session produced significant changes to several practice areas within Florida business law, including assignments for the benefit of creditors or "ABCs." These amendments to F.S. Ch. 727 clarified and streamlined procedures relating to notice, bond amounts, discovery, an assignee's deed, the rejection of unexpired leases, and objections to claims in an ABC proceeding.

  6. Assignments for the Benefit of Creditors: Florida

    This Q&A addresses the process by which assignments are generally administered in Florida, including the commencement and administration of the ABC, the duties and actions of assignees, creditor claims, and the jurisdiction of the court.

  7. PDF The Business Law Section of The Florida Bar

    The proposed amendments seek to clarify and/or streamline certain procedures applicable to an assignment for the benefit of creditors ("ABC") pursuant to Chapter 727, Florida Statutes (the "Statute").

  8. Statutes & Constitution :View Statutes : Online Sunshine

    PLEASE TAKE NOTICE that on , a petition commencing an assignment for the benefit of creditors pursuant to chapter 727, Florida Statutes, made by , assignor, with principal place of business at , to , assignee, whose address is , was filed on , (year) .

  9. Senate Bill 600 (2023)

    CS/CS/SB 600: Assignment for the Benefit of Creditors. Assignment for the Benefit of Creditors; Revising requirements for the commencement of proceedings for general assignments; authorizing assignees to rely on certain orders, judgments, decrees, rules, and documents; limiting the assets a creditor or other party in interest may pursue in an ...

  10. Pursuing Assignments for the Benefit of Creditors

    Assignments for the benefit of creditors (ABCs) are an alternative to formal bankruptcy proceedings. Under Florida law, an ABC is a voluntary, out-of-court process where a debtor transfers their assets to an assignee, who then liquidates these assets and distributes the proceeds to the debtor's creditors.

  11. Florida Statutes > Chapter 727

    Assignee: means a natural person solely in such person's capacity as an assignee for the benefit of creditors under the provisions of this chapter, which assignee shall not be a creditor or an equity security holder or have any interest adverse to the interest of the estate. See Florida Statutes 727.103

  12. CS/HB 491 (2023)

    Revises requirements for commencement of action for general assignments; provides for judicial discretion to determine compliance with Florida Rules of Civil Procedure; provides for assignee's reliance on, & defense for good faith compliance with, court orders, judgments, decrees & rules of law; provides for assignee's relian...

  13. Chapter 727 Section 111

    TO CREDITORS AND OTHER INTERESTED PARTIES: PLEASE TAKE NOTICE that on , a petition commencing an assignment for the benefit of creditors pursuant to chapter 727, Florida Statutes, made by , assignor, with principal place of business at , to , assignee, whose address is , was filed on , (year) .

  14. Florida's Beefed-Up Assignment for the Benefit of Creditors as an

    This is, of course, one of the key benefits of filing bankruptcy, which imposes the automatic stay against all efforts to collect a claim against the debtor or the debtor's property. 7 The assignment itself, as at common law, stymies the efforts of the unsecured creditors, who now hold no claim against an asset holder.

  15. Chapter 727 Section 111

    TO CREDITORS AND OTHER INTERESTED PARTIES: PLEASE TAKE NOTICE that on , a petition commencing an assignment for the benefit of creditors pursuant to chapter 727, Florida Statutes, made by , assignor, with principal place of business at , to , assignee, whose address is , was filed on , (year) .

  16. CS/CS/SB 600 (2023)

    Assignment for the Benefit of Creditors: Revising requirements for the commencement of proceedings for general assignments; authorizing assignees to rely on certain orders, judgments, decrees, rules, and documents; limiting the assets a creditor or other party in interest may pursue in an action against an assignee; providing requirements for a creditor or other party in interest in certain ...

  17. Chapter 727

    PLEASE TAKE NOTICE that on , a petition commencing an assignment for the benefit of creditors pursuant to chapter 727, Florida Statutes, made by , assignor, with principal place of business at , to , assignee, whose address is , was filed on , (year) .

  18. Assignment for Benefit of Creditors

    Florida companies can use the state's Assignment for the Benefit of Creditors (ABC) statute as an alternative to bankruptcy. Instead of letting a bankruptcy trustee sell a company's assets in order to pay off creditors, the Assignment for the Benefit of Creditors statute allows businesses to transfer assets to an assignee.

  19. Assignment For Benefit Of Creditors

    Florida Statutes Chapter 727 governs an assignment for the benefit of creditors. Following are some important points about the way ABCs operate in Florida: ABCs must be in writing. Florida statutes provide a sample form of assignment; the ABC should be in substantially the same form. An ABC represents an irrevocable assignment.

  20. Florida Assignment for the Benefit of Creditors Services

    EDS Florida Assignment for the Benefit of Creditors Services. A Prudent Alternative to Bankruptcy to Maximize Value for all Stakeholders. Statewide . 866-887-0852. ... Skillfully guiding and judiciously representing business owners, creditors, investors, attorneys and law firms, and myriad other stakeholders in the disposition of their troubled ...

  21. PDF Assignments for the Benefit of Creditors: Florida

    Assignee's deed form (§ 727.117, Fla. Stat.). 2. Generally, in which court can an assignment for the benefit of creditors (ABC) be commenced in your jurisdiction? Please explain if an ABC can be conducted without a court iling in your jurisdiction. In Florida, ABCs begin with the contractual assignment of the assignor's assets to an assignee.

  22. Miami-Dade County court receiver files temporary injunction against

    The latest action in Algo Capital's assignment for the benefit of creditors case is a Feb. 2 motion for extension of time filed by the company to respond to the allegations in a hearing set for ...

  23. ‎Law and Lawyering Unplugged: Fighting Bank of America Lawsuits- Where

    Though I am a proud member of the State Bars of Florida and Michigan, this is a source of research and insight into how Brian Parker's mind operates and how he perceives the practice of law when it is used for the benefit of victims Mr. Parker does represent. ... have Standing To Sue you without those assignments. Notice also that creditor ...