Unclaimed bankruptcy funds are proceeds that have not been claimed by their owners, individuals or businesses from the bankruptcy courts. These abandoned funds originate from bankruptcy filings, are administered by trustees and end up in Federal Bankruptcy Courts when owners can’t be located. When individuals or businesses get bankruptcy protection their creditors and shareholders may not get paid any money owed. However, once the bankruptcy procedures are finalized the assets may be distributed to creditors, vendors and shareholders by court order.
Federal Bankruptcy Courts
Bankruptcy laws are administered by the Federal Court through 94 judicial districts. Individuals or businesses who can’t afford to pay back their debts can file for bankruptcy in one of 94 federal courts. Each state has at least one federal district that handles bankruptcy cases. Bankruptcy filers can reorganize their debts by selling off assets and getting repayment plans under court protection.
Case trustees are appointed by courts to administer each bankruptcy case; they are responsible for distributing any money left to creditors. If funds owners can’t be located by the trustee the money is turned to Federal Bankruptcy Court. Owners can claim the bankruptcy unclaimed funds from the courts.
Finding Unclaimed Bankruptcy Money
Parties that may have money owed by insolvent creditors can visit the Bankruptcy Court located in the state of filing. The government site uscourts.gov/bankruptcy provides a map listing all courts administering bankruptcies by state. The majority of these courts have a link to a list of unclaimed funds by owner’s name, last known address and case number. Funds claimants can also contact the bankruptcy court and inquire about unclaimed money turned by trustees for specific cases.
Getting Lost Bankruptcy Money from the Court
Unclaimed funds from bankruptcies can only be distributed by an order of the court. An application must be filed and a petition for payment of unclaimed funds in bankruptcy must be submitted. Notice of this application or petition must be given to the USA Attorney, the US Trustee and the case Trustee. Petition forms are available at the bankruptcy court’s website or by individual’s request.
Documentation Required to Distribute Unclaimed Bankruptcy Funds
The bankruptcy courts required documentation for proof of funds’ ownership before making a distribution. Each bankruptcy court maintains a full list of generally required documents and identifications. The application and documents must be mailed in or deposited at the bankruptcy court. These are common types of documents required:
- Completed Petition to Claim Unclaimed Funds from the courts
- Copy of the Form must be submitted to the US Attorney, US Trustee and Case Trustee
- Government identification - driver's license or passport
- Power of Attorney - if the funds owner is using the services of a third party or agent to claim
- Corporate documents when applicable
- Tax or Employee Identification Number of the funds owners
Other Unclaimed Money Resources:
Resources: Public information at the following government sites, current as of May 3, 2010:
uscourts.gov/bankruptcy – federal court
wiw.uscourts.gov/unclaimedfunds – Wisconsin bankruptcy court
cob.uscourts.gov/ucfunds – Colorado bankruptcy court
txwb.uscourts.gov/finance/unclaimedfunds – Texas bankruptcy court
Sylvia Cruz - Sylvia holds Bachelor and Master degrees in Business Administration with majors in Finance and Accounting. She is also a CIA - Certified ...
