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I am a service provider or vendor of the insolvent company. Will FIGA pay my outstanding invoices?

 

After an order of liquidation is entered by the Court, the Receiver assumes responsibility for marshalling all of the assets of the insolvent company, liquidating the assets and recommending to the Court payment of liabilities as those assets allow. In Florida, the Receiver is the Florida Department of Financial Services. All “covered claims” which are amounts payable under an insurance policy of an insolvent company (see complete definition in Florida Statute 631.54 (4)) are transferred to FIGA for the express purpose of avoiding excessive delay in the payment to claimants or policyholders (Florida Statute 631.51). Therefore, FIGA is not responsible for outstanding service provider or vendor invoices as these liabilities of the insolvent entity are not “covered claims” under the statute. You are, however, not without recourse as these outstanding invoices will be evaluated for payment by the Receiver.
 
If you provided goods or services to the insolvent company prior to the date of liquidation you should contact the Receiver for additional instructions. Generally the Receiver requires a listing of outstanding amounts owed, along with a description of the services provided so that the request can be fairly evaluated. A Proof of Claim will need to be submitted and these can be obtained through the Receiver’s office. For a Florida insolvency you may find the web site http://www.myfloridacfo.com/Division/Receiver/ helpful.
 
You should not continue to provide services after the date of liquidation with the expectation of being paid by FIGA without the express written permission of FIGA. FIGA’s statutory authority is to pay claims and to retain persons necessary to handle those claims. There is no statutory authority for FIGA to pay expenses incurred prior to the liquidation as they are not "Covered Claims" – these are the responsibility of the estate and will be evaluated by the Receiver for payment following Florida Statute 631.271 under the supervision of the Court.