Florida/Georgia Personal Injury & Workers Compensation

...If all of A & E's debts and liabilities are paid in full, Lanier must return to A & E any remaining estate funds. § 727.104(1)(b). Once an assignment is made under section 727.104, all creditors except for lien holders are required to file proofs of claim pursuant to section 727.112. Claims, whether contingent, liquidated, unliquidated, or disputed, must be filed within 120 days from the date that the chapter 727 petition is filed or the claim will be barred "unless for cause shown." § 727.112(1), (2)....

...estitution judgment, the County contended the judgment created a judicial lien against A & E's assets that were being held by Lanier. The County argued that because the judgment *144 created a lien, it was not required to file a proof of claim under section 727.112 and its interest took priority over the interests of A & E's remaining creditors....

...She contended that because the assets had been properly assigned to her and A & E no longer had title to the assets, the restitution judgment against A & E was not a lien against the estate's assets. She also argued that the County could have filed a timely proof of claim asserting a contingent claim under section 727.112, but it did not do so....

...act supercedes all contrary law and is controlling over any conflicting law; and that public policy dictates that criminals should not be able to avoid paying restitution by instituting proceedings for relief against creditors. Lanier responds that section 727.112 addresses claims "which arose prior to the filing date" of the chapter 727 proceeding....

...A & E executed the assignment and commenced the chapter 727 proceeding well before the County obtained a criminal conviction and restitution lien against A & E. The County did not file a timely proof of claim asserting a possible restitution claim, and it did not demonstrate cause that would support a late filing. See § 727.112(2)....

...o section 517.061(11)(a)5, Florida Statutes (1997). Moecker asserts that the trial court erred in allowing the appellees' claims, arguing that the appellees' rescission claims arose after the date of assignment and were therefore not allowable under section 727.112(1), Florida Statutes (1997), and that the appellees' rescission under section 517.061(11)(a)5 was untimely....

...Section 727.114 sets the priority for the claims against the insolvent estate. In the event there are insufficient assets to satisfy all proper claims made against the estate, claims are to be paid on a pro rata basis and in proportion to the scheme of priority provided in section 727.114. See § 727.104(1)(b). Section 727.112(1) provides that all claims, which arose prior to the filing date, other than those claims made by creditors with liens upon assets in the insolvent estate, must be filed in accordance with chapter 727. A claim must be filed within 120 days of the filing date of the petition for assignment. §§ 727.112(2), (5). Claims not filed in accordance with chapter 727 are barred. § 727.112(1)....

...8] There is been little decisional law construing Chapter 727. Moecker asserts that the trial court erred in allowing the appellees' claims for rescission, arguing that the claims arose after the filing date of the petition and were, thus, barred by section 727.112(1). [9] We cannot agree. Section 727.112(1) limits claims to those which "arose" prior to the filing of the petition....