Sometimes, things can’t be helped and you, a small business, or even a large corporation will be forced to file for bankruptcy. Oftentimes when a bankruptcy happens, much of what the person, or the small business, or the corporation owns—everything from cars, to houses, to offices, to office items—will have to be sold. When these items, called assets, are liquidated into cash as part of a bankruptcy case, the resulting money is referred to as bankruptcy funds.
If you are owed money for debts dismissed in a bankruptcy it might not be too late to claim what is yours today. Unclaimed bankruptcy money is held by various U.S. state and federal agencies. Read more about unclaimed bankruptcy funds and how to claim the money you are rightfully owed today.
The phrase “unclaimed bankruptcy funds” refers to the money that is left uncollected by creditors or other entities who were owed money by a person or business filing bankruptcy. Basically, after all the assets are sold, it’s possible that some of the bankruptcy funds—the cash from all the assets that are sold—are left over after creditors and debts are paid back. Multiple millions of dollars in bankruptcy funds go unclaimed each year for a wide variety of reasons. Most times, however, it is because the entitled party was unaware a bankruptcy was ever filed.
Bankruptcies are categorized as several different types, which are officially referred to as chapters. Chapters 7 and 13 bankruptcies are the two most common chapters filed by consumers today, with chapter 11 following not far behind.
Chapter 7 bankruptcy, also referred to as liquidation bankruptcy, requires the liquidation of the filer’s assets until all applicable debts are paid in full.
Chapter 13 bankruptcy, also referred to as a wage earner’s plan, permits filers to create a repayment plan to satisfy some of all applicable debts albeit without the need to liquidate any assets. A chapter 11 bankruptcy is the most complicated type. Chapter 11 is reserved for the reorganization of an individual or business debtor’s financial affairs into a payment program best serving the needs of all creditors.
To successfully file for bankruptcy the filer is required to prove the inability to pay off debts without the assistance of the bankruptcy process. When debts are dismissed, it is because money owed to creditors is made available via asset liquidation or new repayment plans. Chapter 13 bankruptcies commonly involve negotiations between the debtor and creditors to establish an equitable repayment plan.
Chapter 7 bankruptcies do not necessarily require negotiations. Available bankruptcy funds are normally disbursed to the creditors by the court. Sometimes the court or court-appointed trustee cannot locate entitled recipients.
So, the bankruptcy money therefore goes unclaimed and is forwarded to the U.S. Department of the Treasury (USDT) for safekeeping.
So, how do you find out if there’s unclaimed money waiting for you?