Local Rule 3009-1: Processing Returned Creditor Overpayments in Chapter 7 Cases
Bankr. W.D.N.C. — General rule
Local Rule 3009-1 Processing Returned Creditor Overpayments in Chapter 7 Cases Returned Creditor Overpayments. Following the final distribution to creditors in a Chapter 7 case, a trustee is authorized to process returned creditor overpayments as follows:
(a) If the returned creditor overpayments total $500 or more in any case, the trustee shall disburse the overpayments to creditors pursuant to the previously filed final report, excluding the overpaid creditor's share, on a pro rata basis.
(b) If the returned creditor overpayments total less than $500 in any case, the overpayments shall be deemed to be abandoned to the debtor, and the trustee may disburse the funds directly to the debtor.