Local Rule Rule 3011-1: Deposit and Distribution of Unclaimed Funds

Rule 3011-1 Deposit and Distribution of Unclaimed Funds

(a) Deposit by Chapter 7 Trustee If there are no timely objections to the trustee's final report and account, the trustee shall make distribution in accordance with the report upon Order of the Court. If the net proceeds realized do not exceed $1500 after payment of administrative expenses, the trustee shall make distribution for expenses and claims without notice.

(b) Deposit by Chapter 11 Subchapter V, 12, or 13 Trustee If any funds remain unclaimed after the final distribution of funds is made in a Chapter 11 Subchapter V, 12, or 13 case as required by 11 U.S.C. § 347(a), the trustee shall file a Motion to Pay Into the Court Registry any remaining funds. Upon entry of a final order granting such motion, the trustee shall pay the remaining funds into the Court Registry and shall provide the Court's finance officer a list of the last known names and address of the unpaid claimants and the amounts they are entitled to receive, as required by the Federal Rule of Bankruptcy Procedure 3011.

(c) Disposition of Unclaimed Funds Under a Chapter 11 Liquidating Plan

(1) Notice, Deposit of Funds, and Final Account – The disbursing agent, the debtor-in-possession, or the Plan Administrator under a Chapter 11 plan that provides for the complete liquidation of the property of the debtor shall, when making final distribution under the plan:

(A) Notify such entity, if any, that purchased all of the debtor's assets under the chapter 11 plan of its potential right to the unclaimed funds, to the extent the disbursing agent, the debtor-in-possession or the trustee can identify such entity.

(B) Unless the plan provides otherwise, pay over to the Court Registry any funds left unclaimed 120 calendar days after the final distribution is made under the plan, accompanied by a Motion to Pay Into the Court Registry.

(C) File a final account under 11 U.S.C. § 1106(a)(7), prior to the expiration of time provided in 11 U.S.C. § 1143, and all other reports (if any) required by these Local Rules.

(2) Provisions for Unclaimed Funds - A chapter 11 liquidating plan may provide that any unclaimed funds may be redistributed to other creditors or administrative claimants or donated to a not-for-profit, non-religious organization identified in the plan or disclosure statement accompanying the plan.

(d) Disposition of Un-distributable Funds Under a Chapter 11 Liquidating Plan

(1) Un-distributable funds are any funds other than unclaimed funds, including, but not limited to, funds that cannot be disbursed because

(A) a creditor has affirmatively rejected a distribution,

(B) the administrative costs of distribution effectively interfere with distribution, or

(C) all creditors, including administrative claimants, have been paid in full and there is no one that has a right to the funds.

(2) Provisions for Un-distributable Funds - A chapter 11 liquidating plan may provide that any un-distributable funds, if applicable or practicable, may be redistributed to other creditors or administrative claimants or donated to a not-for-profit, non-religious organization identified in the plan or disclosure statement accompanying the plan.

(3) Procedure for Disposition of Un-distributable Funds - If a chapter 11 liquidating plan does not provide for the disposition of un-distributable funds then, if there are any such funds at the time of final distribution under the plan, the disbursing agent, the debtor-in-possession, or the Plan Administrator shall file a motion proposing disposition of such funds, which may include the dispositions described in subsection (c)(2) of this rule. Such motion shall be served on all creditors or parties in interest, or on such creditors and parties in interest as the Court shall direct, with notice and opportunity for hearing.

(e) Payment of Unclaimed Funds A claimant shall submit to the Clerk an Application for Payment of Unclaimed Funds and a proposed order, sworn or attested under penalty of perjury. An individual claimant shall provide to the Clerk a copy of a government issued photo identification, such as a driver's license, state issued ID or passport. A corporation whose name has changed or that has been assigned rights to the funds shall provide appropriate documentation, satisfactory to the Court, to demonstrate the claimant's entitlement to the funds. Fund locator services or other agents shall provide a copy of their power of attorney authorizing them to make the claim for the claimant. The Application and other required documents shall be served on the United States Attorney. Detailed procedures for payment of unclaimed funds are available from the Other Services link on the Court's website.