The check returns to the office undeliverable. Since you have physical custody of the check:
- Go into the software and Void the transaction.
- Write a new check to the U.S. Bankruptcy Court (change the name and address as shown below) and link it to the assigned claimant. (Note: It is very important to link the check to the origin claim, as it keeps the reference to the original claimant.)
- Check the ‘Unclaimed Funds’ box (at the far bottom right corner of the screen) so the UTC code will display the -001 on Form 2.
- Print and mail the check to the U.S. Bankruptcy Court.
- Verify the transaction displays correctly in the TDR (details are shown below under the paragraph titled ‘TDR Display’).
Scenario Two:
The check does not return to the office, but goes stale and you have exhausted your resources to find the creditor. Go to the Home Page and place a Stop Payment on the check. Wait one business day for the Stop Payment to process. Then, go into the software and write the check, linking to the claimant, and change the name and address to the U.S. bankruptcy court. Do not forget to mark the ‘Unclaimed Funds’ checkbox (shown highlighted in yellow in the lower right corner of the screen shown above).
TDR Display
The TDR will display the transaction correctly (as shown below), as the transactions are stacked top to bottom when showing the transaction history.
Funds Refused by the Creditor
Funds refused by the creditor should be calculated for redistribution. Completing a supplemental distribution uses the same process as the initial distribution, with one caveat. When running the supplemental distribution, ensure to exclude the claimant (in step 2 of the Distribution Wizard shown below) who returned the funds from the supplemental distribution. This way, you do not send them a second check they will not cash. To exclude the creditor, deselect/uncheck the claim (the checkbox shown in the lower left corner of the screen below) during the distribution before proceeding.
