SYSTEM AND METHOD PAYMENT ALLOCATION AND PROCESSING OF BANKRUPTCY CLAIMS

• US 20110106694A1
• Filed: 11/12/2010
• Published: 05/05/2011
• Est. Priority Date: 09/07/2007
• Status: Active Grant

• Current Assignee: G2 Bankruptcy RISK Solutions Incorporated
• Original Assignee: National Default Exchange LP (Dolan Company)
• Inventors: Donowho, Eric L., Petr, Elizabeth I., Brasiel, Robert W., Singh, Rajinder M.
• Granted Patent: US 8,756,132 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method provides electronic management and processing of bankruptcy-related claims and payments. The method includes receiving loan servicer data from a loan servicer portfolio. The method also includes receiving trustee data from a repository of trustee information. The method includes comparing one or more data fields related to the claims from the service provider data to corresponding one or more data fields related to the claims from the trustee data and assigning a score to the comparison results for the data fields related to the claims based on one or more business rules. The method includes calculating the total score for the comparison results for the claims, designating the claim as being valid if the total score for the claim is greater or equal to a predetermined value, and designating the claim as being invalid if the total score for the claim is less than a predetermined value.

Claims

1. A method for payment allocation and processing of bankruptcy claims, comprising:

receiving, by a computer, loan servicer data from a loan servicer, the loan servicer data relating to one or more loans, including bankruptcy plan information, whose debtors are in bankruptcy and one or more claims filed by creditors against the debtors;

receiving trustee data from a repository of trustee information, the trustee data relating to the loans whose debtors are in bankruptcy and the claims filed by the creditors;

matching loan servicer data with trustee data to identify matched claims from the loan servicer and the trustee; and

for each of the matched claims, providing correct payment disbursement instructions to the loan servicer for payments that are remitted by the trustee;

wherein the matching of servicer and trustee data comprises comparing one or more data fields related to the claims from the loan servicer data to corresponding one or more data fields related to the claims from the trustee data, assigning a score to the comparison, and verifying a match when the score is above a predetermined value.

2. The method according to claim 1, wherein assigning the score to the comparison results is based on one or more business rules, wherein the assigned score for the comparison results is weighted depending on the data fields related to the claims.

3. The method of claim 1, wherein providing correct payment disbursement instructions to the loan servicer further comprises comparing an amount due on a claim per a confirmed plan to an amount remaining due.

4. A method for reconciliation reporting and processing of bankruptcy claims, comprising:

receiving, by a computer, loan servicer data from a loan servicer, the loan servicer data relating to one or more loans, including bankruptcy plan information, whose debtors are in bankruptcy and one or more claims filed by creditors against the debtors;

receiving trustee data from a repository of trustee information, the trustee data relating to the loans whose debtors are in bankruptcy and the claims filed by the creditors;

matching loan servicer data with trustee data to identify matched claims from the loan servicer and the trustee; and

for each of the matched claims, sending notification to one of the trustee and to the loan servicer regarding any discrepancies identified between data fields in the loan servicer data and corresponding data fields in the trustee data;

wherein the matching of servicer and trustee data comprises comparing one or more data fields related to the claims from the loan servicer data to corresponding one or more data fields related to the claims from the trustee data, assigning a score to the comparison, and verifying a match when the score is above a predetermined value.

5. The method according to claim 4, wherein assigning the score to the comparison results is based on one or more business rules, wherein the assigned score for the comparison results is weighted depending on the data fields related to the claims.

6. The method of claim 4, further comprising providing notification to the loan servicer when a comparison of the loan servicer data and the trustee data indicates the loan servicer has an incorrect bankruptcy number.

7. The method of claim 4, further comprising providing notification to the trustee when a comparison of the loan servicer data and the trustee data indicates the trustee has remitted payment amounts that are not correct.

8. The method of claim 4, further comprising providing an external interface for providing the notification to one of the trustee and to the loan servicer.

9. A computer-readable non-transitory storage medium including instructions for controlling a computer system to perform a method for payment allocation and processing of bankruptcy claims, comprising the steps of:

receiving loan servicer data from a loan servicer, the loan servicer data relating to one or more loans whose debtors are in bankruptcy and one or more claims filed by creditors against the debtors;

receiving trustee data from a commercially available repository of trustee information, the trustee data relating to the loans whose debtors are in bankruptcy and the claims filed by the creditors;

matching loan servicer data with trustee data to identify matched claims from the loan servicer and the trustee; and

for each of the matched claims, providing correct payment disbursement instructions to the loan servicer for payments that are remitted by the trustee;

wherein the matching of servicer and trustee data comprises comparing one or more data fields related to the claims from the loan servicer data to corresponding one or more data fields related to the claims from the trustee data, assigning a score to the comparison, and verifying a match when the score is above a predetermined value.

10. The computer-readable non-transitory storage medium of claim 9, wherein assigning the score to the comparison results is based on one or more business rules, wherein the assigned score for the comparison results is weighted depending on the data fields related to the claims.

11. The computer-readable non-transitory storage medium of claim 9, wherein providing correct payment disbursement instructions to the loan servicer further comprises comparing an amount due on a claim per a confirmed plan to an amount remaining due.