Unclaimed Property & Bankruptcy
The proceeds from assets liquidated during a bankruptcy are distributed among the creditors owed, according to U.S. bankruptcy law. The Trustee, a representative of the court, does this according to a plan agreed upon by all parties. The U.S. bankruptcy court system has a plan in place for funds left unclaimed by creditors.
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Protocol
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The property is held by the court clerk for five years. At that time, the funds are deposited at the U.S. Treasury. They are listed under the name of the owner of the funds. There the funds sit until claimed.
Function
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The federal courts maintain a list of the assets held long after the bankruptcy proceedings end. This includes the funds held at the U.S. Treasury. You can search the database to see if you have unclaimed assets.
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Redemption
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The funds are only returned after the court orders it. Your attorney must file a motion with the district attorney and a judge must rule to release the assets to you or the creditors they were supposed to go to during the bankruptcy.
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