Unclaimed Funds In US Bankruptcy Courts

It is estimated more than $200 million is held by the Federal Bankruptcy Courts as a result of unclaimed or unpaid refunds owed to bankruptcy creditors. Each state has its own laws, rules, and regulations, but if you are owed money by an individual or business that has gone bankrupt, there are steps to take to recover your money.

Unclaimed funds are monies paid by the bankruptcy trustee to the Bankruptcy Clerk, who then is the custodian of those funds until the person or entity entitled to those funds files an application to release the unclaimed funds to them. In bankruptcy cases that have assets, the trustee pays out money collected from the debtor to creditors who have filed claims in a particular case. Sometimes, the money paid out by a trustee is returned as undeliverable or the check is not cashed within 90 days. By law, the trustee is required to deposit those funds to the court as unclaimed. Also, in some cases the trustee pays monies as unclaimed funds to the court wherein the funds are due the debtor, such as in a dismissed case. In either example, the check was returned to the trustee as undeliverable because the person had moved and did not report the change of address to the court and the trustee.

28 U.S.C. §0241 governs the legal procedures for monies paid into the court. 28 U.S.C. § 2042 required that any monies paid into the court may only be withdrawn by court order. Accordingly, a claimant entitled to funds must petition the court for release of those funds, provide notice of the request to the United States Attorney, and after providing full proof of the right thereto, may obtain an order from the court directing payment to the claimant.

Bankruptcy laws are administrated by U.S. Federal Courts in nearly 100 judicial districts. To find the location of each Bankruptcy Court, Click Here to be linked to the USCourts.gov and their Advanced Search.

To obtain the necessary Forms and Information regarding Unclaimed Money and the Application and Instructions for Payment of Unclaimed Funds. Click Here.

For Information on Bankruptcy Basics, Click Here.

In Bankruptcy proceedings a trustee is appointed to oversee the liquidation of assets. Monies received from the liquidation are distributed to creditors, vendors and shareholders as per the code which stipulates priority payments. Creditors with secured collateral are first in line, while unsecured creditors and stockholders follow.

The State Unclaimed Property Agencies do not list Bankruptcy Unclaimed Funds. You should apply to the Bankruptcy Court where the Bankruptcy was approved. See Bankruptcy Court location Search as previously mentioned. Some courts publish an Unclaimed Funds list, so go to the Individual Court's Website.

To search and access the application for claiming funds - just type in "Unclaimed Funds" in their search box.

You've now have the information you need and you can do it yourself - Good Luck!

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The Unclaimed Money Database is a Fast and Easy Way to See if you have Missing Money that is being held by the Government. You'll instantly search the National Unclaimed Property database. You can also be connected to every State's Unclaimed Property Agency so you can contact them by email or telephone to receive personal service in retrieving your money.

The Unclaimed Money Search is Free for Network of Business Members. To Login, Click Here. If you're not a Member - Click Here.

Remember the service is Free and there is a 30% chance that you'll find some Missing Money.

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