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Tax Delinquent Overages
Bankruptcy Related Unclaimed Creditor Claims
When an individual or a business files for bankruptcy protection against creditors, the federal United States becomes the overseer of balancing the responsibiity of protecting the Debtor’s responsibiliies and property with the rights, responsibilities and property of the Creditor(s) who have debts owed to them by the Debtor. If the Debtor has sufficient assets that the Trustee of the Bankruptcy Court can liquidate by selling, then the Creditors can, if justified, receive payment for the outstanding debts that the Debtor owed them.
If there are no assets to liquidate on the part of the Debtor, then no Creditors will receive any payment for their outstanding bills to the Debtor, and they must cease any further collection action against that Debtor forever. At this point most Creditors will simply write these accounts payable, off, as uncollectable bad debt on their business books.
If however, at a later date, the Bankruptcy Trustee acquires or discovers assets from the Debtor, which generate capital, the Trustee must distribute those assets fairly to the Creditors. Due to various factors (deaths, moving, going out of business, change of names etc.), Creditors, be they individuals or companies, often fail to receive money that the Trustee has in evidence on their behalf. Also, due to sometimes the assets not materializing for years after the initial bankruptcy filing, Creditors are unaware of funds that have become available to mitigate in part or in full the debt obligation originally owed them by the Debtor. Unless claimed properly, these funds can sit in escrow bankruptcy accounts for years. And sometimes the funds, if unclaimed can be repossessed by the bankruptcy Debtor.