Florida Chapter 11 and ABC data sales: what Florida companies should know

Florida produces a large share of the country's business bankruptcy filings, from small Subchapter V cases in Tampa and Orlando to large Chapter 11s in Miami. It also has one of the most used statutory alternatives to bankruptcy: the Florida assignment for the benefit of creditors. Either way, a Florida company with years of operational records may have an asset no one has priced. This guide explains how a data offer process fits each route.

General information, not legal advice. Florida law and local bankruptcy practice change; your counsel should advise on your case.

Three districts, one set of federal rules

Florida has three federal districts, each with its own bankruptcy court:

• Southern District: Miami, Fort Lauderdale and West Palm Beach.
• Middle District: Tampa, Orlando, Jacksonville, Fort Myers and Ocala. One of the busiest bankruptcy districts in the country.
• Northern District: Tallahassee, Gainesville and Pensacola.

The Bankruptcy Code applies the same way in each. A data license outside the ordinary course needs notice and a hearing under § 363(b), with the privacy limit in § 363(b)(1). What differs is local practice: how hearings are set, preferred forms of orders, and how judges handle requests for expedited relief. Your counsel will know the local rules and the chambers' preferences.

Subchapter V is common in Florida

Florida has a large share of small and family-owned businesses that qualify for Subchapter V: restaurant groups, medical and dental practices, contractors, marine and hospitality businesses, and professional services firms. The 90-day plan deadline means an offer process for data has to start early to help the plan. In practice that means a systems list and a go/no-go read in the first two weeks, written offers by week four, and an order before the plan is filed. See Subchapter V cash from data for an owner's view.

The Florida ABC route

Florida's assignment for the benefit of creditors is governed by Chapter 727 of the Florida Statutes. Unlike some states where ABCs are purely private, a Florida ABC is commenced by filing a petition in state circuit court, and the assignee administers the estate under the court's oversight. That has two consequences for a data sale:

1. There is a court, but it isn't the bankruptcy court. The assignee sells assets under the statute and the circuit court's supervision. Section 363(b)(1) and the bankruptcy ombudsman process don't apply, but state law, the company's privacy policy and consumer protection law do.
2. It's often faster. An assignee can run a short offer process and sell, with notice to creditors as the statute and court require, often in less time than a bankruptcy sale.

Buyers of de-identified data generally accept Florida ABC sales when the assignee's authority is clear and the lender has consented. Our ABC guide covers how assignees document a data sale.

Florida privacy law

Florida's main comprehensive privacy statute, the Florida Digital Bill of Rights, took effect July 1, 2024. Its core obligations apply only to very large companies, roughly those with more than $1 billion in global revenue that meet additional tests, so most distressed mid-size Florida companies aren't covered by it. Some provisions on sensitive data have broader reach. That doesn't mean there are no rules:

• The Florida Information Protection Act imposes data-security and breach-notification duties on businesses holding personal information of Florida residents.
• Other states' laws apply to the company's customers and employees who live elsewhere, which is common for Florida companies with national customers.
• The company's own privacy policy binds it in bankruptcy through § 363(b)(1) and outside bankruptcy through consumer-protection law.
• Sector rules such as HIPAA for healthcare and GLBA for financial services apply regardless of state.

The practical answer is the same as everywhere: license a de-identified copy, ban re-identification and contact, and exclude regulated categories. See privacy policies and bankruptcy data sales.

Industries that come up in Florida cases

• Hospitality and restaurants: reservation and POS systems are consumer-heavy; operations email, scheduling and vendor records are better candidates.
• Healthcare practices: patient records are out of scope entirely. Only non-patient administrative records may be considered.
• Construction and real estate services: bid, RFI and change-order records can be valuable. See our construction guide.
• Logistics and freight: Florida's ports and distribution hubs produce rich dispatch and claims records. See the logistics guide.
• Retail and e-commerce: consumer data triggers the hardest privacy questions. See the retail guide.

Lenders and Florida cases

Florida operating companies often borrow from community and regional banks with blanket liens, or from SBA lenders. Expect the lender to claim the data as a general intangible and the proceeds as cash collateral. Lender consent with an agreed split, or a carve-out for the estate, is the usual resolution. Bring the lender into the offer process early: a lender that sees competing written offers is far more likely to consent than one that hears about a sale after the motion is filed.

A Florida timeline

The ABC column is often faster, but the right route depends on the whole case, not on the data alone.

Getting started

Have your counsel or assignee submit the matter or request an offer review directly. Our 363 motion checklist shows what counsel will need for a bankruptcy filing.

Frequently asked questions

Can a Florida company sell its data in bankruptcy?

Yes, with notice and a hearing under § 363(b), subject to liens, contracts and the privacy limits in § 363(b)(1). The process is the same in all three Florida districts, with local variations.

Is a Florida ABC court-supervised?

Yes. A Florida ABC under Chapter 727 begins with a petition in state circuit court, and the assignee administers the estate under the court's oversight, unlike purely private ABCs in some other states.

Does the Florida Digital Bill of Rights apply to a mid-size company?

Usually not its core obligations, which target very large companies. Other laws still apply, including breach and security rules, other states' privacy laws and the company's own policy.

Is a data sale faster in a Florida ABC?

Often, because there is no bankruptcy notice period and sale hearing, but the assignee still follows the statute and any court requirements.

Can a Subchapter V debtor in Florida use data proceeds for plan payments?

Yes, if the lender's rights are addressed and the plan accounts for the proceeds. Start early to beat the 90-day plan deadline.

What if most of our data is about consumers?

Then the privacy analysis drives the deal. Operations, vendor and internal records are usually licensable after de-identification; consumer databases may need to be excluded.

This guide is general information, not legal, tax or financial advice, and reading it does not create an attorney-client relationship. Bankruptcy outcomes depend on the facts, the court and the parties; nothing here promises price, timing or court approval. Talk to your bankruptcy counsel about your case.