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. § 2041 governs the legal procedure for monies paid into the court. 28 U.S.C. § 2042 requires that any monies paid into the court may only be withdrawn by court order.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.
Please click here to see the requirements and forms to request an order directing payment. There is no charge for this service.
A completed Form W-9 with Addendum is required for the return of unclaimed funds, in accordance with Clerk policy.
You may search the Unclaimed Funds Locator. If your name or the name of your business appears on this list, you may be entitled to a refund.
Please allow 8 weeks from the date the court receives your Application for Release of Unclaimed Funds for verification and processing.