FREQUENTLY ASKED QUESTIONS
The following questions and answers do not constitute legal advise and are being provided for information purposes only.
What is an Assignment for the Benefit of Creditors?
An assignment for the benefit of creditors (“ABC”) is an alternative to formal bankruptcy proceedings and is governed by state law. An ABC involves a voluntary assignment of all of the assignor’s assets to a third-party assignee. The assignee then liquidates the assets in accordance with the assignment statute. An ABC allows an assignor to efficiently liquidate its assets while at the same minimizing costs associated with multiple creditors attempting to either block a sale or seize an asset. This can maximize value and allow for efficient administration.
What is an Assignor?
The Assignor is the business entity that is going to be liquidated under the general assignment. Sometimes the assignor is referred to as the “debtor.”
What is an Assignee?
The Assignee is the individual who assumes responsibility for all assets of the assignor going forward. He is responsible for taking possession of the assignor’s assets, administering those assets as instructed by the Court, instituting such actions and legal proceedings for the benefit of the creditors as the Assignee deems necessary, and other related tasks. An Assignee is an officer of the Court. In this case, Mark C. Healy of Michael Moecker & Associates, Inc. is the Assignee.
Who is the Judge that is overseeing all of these assignment cases?
The Honorable James J. Goodman is overseeing these assignment cases.
Can a creditor get a judgment against the assignor after an assignment is made?
Creditors are not barred from obtaining a judgment against an assignor. However, a creditor’s remedies are limited, and proceedings may not be commenced against the assignee except as provided in Chapter 727 of the Florida Statutes, and except in the case of a consensual lienholder enforcing its rights in personal property or real property collateral, there shall be no levy, execution, attachment, or the like in respect of any judgment against assets of the estate in the possession, custody, or control of the assignee.
Can an Assignee operate the business?
Yes, for a specific period of time, after which the Court may be extend the time for the Assignee to continue to operate the business.
Is the Assignee liable to the creditors for unpaid claims?
No, the Assignee is not liable for the claims against the debtor. The Assignee is responsible to the creditors to pay claims from the assets assigned by the debtor but does not taken on any individual responsibility for the payment of claims.
Must a creditor file a claim with the Assignee?
Yes, a creditor must file a claim with the Assignee using the proof of claim form provided on this website.
What is the process for determining allowance and disallowance of claims?
All claims properly filed with the Assignee and not disallowed by the Court are the claims entitled to distribution from the estate.
If my claim is filed first, do I get paid first?
Unless you are a secured creditor with a valid lien on the assets of the assignor, then it doesn’t matter if you are the first to file a claim. Timing will matter, however, if you file your claim after the period to do so has expired. Otherwise, your claim will be paid, assuming funds are available, along with the class of claims to which yours belongs.
Can the Assignee object to claims?
Yes. If a claim is filed for an amount that is not reflected on the company’s books and records, or if it is filed late, or for several other reasons, the Assignee can object to a creditor’s claim.
How soon after I file my claim will I get paid?
Payment of claims depends on what is required to administer the company’s assets. If the Assignee can recover funds by prosecuting one or more lawsuits, that may take longer than, for example, the sale of assets. Keep in mind, though, that some claims, especially those of general unsecured claims, may be paid only partially or not at all if there are insufficient proceeds to pay all claims.
Should I hire a lawyer?
You have the right to hire or consult with your own lawyer, and the Assignee encourages you to speak with your own lawyer should you feel more comfortable. The Assignee will be investigating all potential claims in order to maximize the pool of assets that will be available for distribution to all creditors. You do not need a lawyer to submit a proof of claim or receive a distribution.
Is the Assignee my lawyer?
The Assignee is not your lawyer, and he cannot provide you with legal advice. The Assignee will, however, be investigating potential claims or methods of recovery that he can bring for the benefit of creditors.
How can I stay informed of the progress in this case?
The Assignee will post new information on this website from time to time, including Court Documents, and FAQ’s. Parties who wish to receive notices in these Assignment Cases may also contact the Assignee at notices@moecker.com to request to be added to the e-mail service list.
If I have other questions, how can I get them answered?
You can contact the Assignee at info@moecker.com.