Unclaimed funds are funds held by the bankruptcy court for an owner or recipient who is entitled to the money, but who has failed to claim ownership of it. Unclaimed funds may arise out of a variety of circumstances. For example, delivery of a payment may not be possible because of faulty or incomplete address information for the recipient. In other instances, proceeds or uncashed dividend checks from bankruptcy cases may not have been claimed by the parties, agencies, next of kin, or other recipients entitled to them.
Applications for release of unclaimed funds must comply with 28 U.S.C. Section 2042. The party entitled to the funds, or the party’s agent, must file with the court a motion/application and submit a proposed order for payment of unclaimed funds. Notice of the motion must be given to the United States Attorney, the United States Trustee, and the case trustee, if any.
All claims must have proper documentation as required for executing the application for reimbursement. These should include at least the following:
- Application for reimbursement or a motion to release the funds
- Proposed court order to release the funds (signed by person submitting proposed order)
- Proper authority by the signer or claimant requesting release of the funds
- Photocopy of photo identification such as driver’s license or passport, or a letter of administration or probated will, or corporate documents (if applicable) showing proof of ownership of the funds through amendment, merger, or dissolution, as appropriate.
- Completed IRS form W-9. Claimant’s social security or tax identification number is required for processing of all payments of unclaimed funds.
For more information, contact Administrative Services at (505) 348-2435.