System and method for management and processing of bankruptcy claims and payments

• US 7,856,385 B2
• Filed: 09/07/2007
• Issued: 12/21/2010
• 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.
• Primary Examiner(s): Dixon; Thomas
• Assistant Examiner(s): Vizvary; Gerald C
• Application Number:
  US11/852,086
• Publication Number:
  US 20090070245A1
• Time in Patent Office: 1,201 Days
• Field of Search: None
• US Class Current: 705/35
• 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 electronic management and processing of bankruptcy-related claims and payments, comprising the steps of:

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;

creating, by a computer, a relationship between the loan servicer data and the trustee data by 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 results for the data fields related to the claims 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;

calculating, by a computer, 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.

2. The method according to claim 1 further comparing a loan number for a selected claim from the loan servicer data to a corresponding loan number for the selected claim from the trustee data.

3. The method according to claim 1 further comprising comparing a debtor name for a selected claim from the loan servicer data to a corresponding debtor name for the selected claim from the trustee data.

4. The method according to claim 1 further comprising comparing a debtor social security number for a selected claim from the loan servicer data to a corresponding debtor social security number for the selected claim from the trustee data.

5. The method according to claim 1 further comprising comparing a claim amount for a selected claim from the loan servicer data to a corresponding claim amount for the selected claim from the trustee data.

6. The method according to claim 1 further comprising comparing a creditor name for a selected claim from the loan servicer data to a corresponding creditor name for the selected claim from the trustee data.

7. The method according to claim 1 further comprising comparing a bankruptcy number for a selected claim from the loan servicer data to a corresponding bankruptcy number for the selected claim from the trustee data.

8. The method according to claim 1 further comprising comparing a trustee name for a selected claim from the loan servicer data to a corresponding trustee name for the selected claim from the trustee data.

9. The method according to claim 1 wherein the loan servicer data includes data from a proof of claim (POC) filed by the creditors against the debtor.

10. The method according to claim 1, further comprising identifying one or more claims against a particular loan based on the comparison results.

11. The method according to claim 1 wherein the trustee data is received from a commercially available database, the commercially available database being a repository of trustee data.

12. The method according to claim 1 wherein the assigned score for the comparison varies depending on the data fields related to the claims.

13. The method according to claim 12 wherein the assigned score for the comparison results is high if the data field is a loan number.

14. The method according to claim 1 further comprising changing the assigned score for the comparison results.

15. The method according to claim 1 further comprising:

storing the service provider data into a server.

16. The method of claim 1 further comprising generating payment instructions for the valid claims.

17. The method of claim 1 further comprising:

generating payment instructions for the valid claims; and

providing the payment instructions to the loan servicer.

18. The method of claim 1 further comprising receiving trustee data related to amended claims, wherein the amended claims are filed by the creditors.

19. The method of claim 1 further comprising identifying one or more claims for exception review, wherein the claims selected for exception review achieves a low score.

20. A computer-readable non-transitory storage medium including instructions for controlling a computer system to perform a method for electronic management and processing of bankruptcy-related claims and payments, 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;

creating a relationship between the loan servicer data and the trustee data by 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 results for the data fields related to the claims 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;

calculating the total score for the comparison results for the claims;

designating the relationship as matched and the claim as being valid if the total score for the claim is greater or equal to a predetermined value;

designating the relationship as unmatched and the claim as being invalid if the total score for the claim is less than a predetermined value.

21. The computer-readable non-transitory storage medium of claim 20 further comprising generating payment instructions for the valid claims, the payment instructions including trustee disbursement information and instructions on how to apply funds to the creditor'"'"'s account.

22. The computer-readable non-transitory storage medium of claim 20 wherein the commercially available repository of trustee information is a database of trustee information from the National Data Center.