The Rosenberg case continues to make noise, and breaking ground on all fronts for involuntary bankruptcy proceedings. This case involves six special purpose entities under the strings of its master puppeteer, U.S. Bank, placed the individual principal of a medical imaging business…

In Florida, a court, for the benefit of a judgment creditor, can issue notice or process, adjudicate, levy, and sell assets in the hands of non-parties to satisfy a judgment under what is known as “proceedings supplementary” pursuant to the statutory framework established under Section 56.29, Florida Statutes.

An “Assignment for the Benefit of Creditors” (“ABC”) is a state-law alternative to bankruptcy, as already discussed in my prior blog posting on such proceedings. In Florida, business entities can opt to use this fairly inexpensive process under Chapter 727 of the Florida Statutes.

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. This method of liquidating or transferring assets has long been popular in Florida. The assignment case is filed in a Florida Circuit Court where the assets of the business, assignor, are located.

When the reference of a core matter from a bankruptcy court to a district court, a practitioner must be aware of the continued application of the Federal Rules of Bankruptcy Procedure in the new forum.