System and method payment allocation and processing of bankruptcy claims

• US 8,756,132 B2
• Filed: 11/12/2010
• Issued: 06/17/2014
• Est. Priority Date: 09/07/2007
• Status: Active Grant

• Current Assignee: G2 Bankruptcy RISK Solutions Incorporated
• Original Assignee: N/B Pact, LLC
• Inventors: Petr, Elizabeth I, Donowho, Eric L, Brasiel, Robert W, Singh, Rajinder M
• Primary Examiner(s): Pats, Justin M
• Assistant Examiner(s): Puri, Venay
• Application Number:
  US12/945,270
• Publication Number:
  US 20110106694A1
• Time in Patent Office: 1,313 Days
• Field of Search: 705/38
• 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 computer-implemented method for payment allocation and processing of bankruptcy claims, comprising:

receiving, by a database server comprising a processor, loan servicer data from a loan servicer database that communicates with the database server via a communication network, 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, by the database server, trustee data from a trustee repository wherein the trustee repository is distinct and independent from the loan servicer database of the loan servicer and the trustee data comprising chapter 13 trustees data and bankruptcy claims whose debtors are in bankruptcy with the claims filed by the creditors;

matching, by the data processing system, a data field from the loan servicer data with a data field from the trustee data to identify matched bankruptcy claims;

wherein the matching comprises comparing a corresponding data field from the loan servicer data, wherein the corresponding data field comprises at least loan number and debtor name;

assigning, by the data processing system, a high number of points when a data field from the loan servicer data matches the corresponding data field from the trustee data;

assigning a low number of points when a data field from the loan servicer data partially matches the corresponding data field from the trustee data, the low number of points is less than the high number of points;

assigning no points when a data field from the loan servicer data does not match the corresponding data field from the trustee data;

calculating, by the data processing system, a total score based on the assigning of points for the matched claims;

applying, by the data processing system, a higher weight to the total score resulting from a comparison of the loan number data field and applying a lower weight to the debtor name data field, wherein the lower weight is less than the higher weight

designating the matched claim as being valid if the total score for the bankruptcy 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 the predetermined value

and providing, by the data processing system, payment disbursement instructions to the loan servicer using instructions from the trustee data for payments that are remitted by the trustee for each of the matched claims.

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. The method of claim 1, 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.

5. The method of claim 1, 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.

6. The method of claim 1, further comprising providing an external interface for providing the notification to one of the trustee and to the loan servicer.

7. 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, by a database server comprising a processor, loan servicer data from a loan servicer database that communicates with the database server via a communication network, 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, by the database server, trustee data from a trustee, wherein the trustee repository is distinct and independent from the loan servicer database and the trustee data comprising chapter 13 trustees data and bankruptcy claims whose debtors are in bankruptcy with the claims filed by the creditors;

matching, by the data processing system, a data field from the loan servicer data with a data field from the trustee data to identify matched claims;

wherein the matching comprises comparing a corresponding data field from the loan servicer data, wherein the corresponding data field comprises at least loan number and debtor name

assigning, by the data processing system, a high number of points when a data field from the loan servicer data matches the corresponding data field from the trustee data;

assigning a low number of points when a data field from the loan servicer data partially matches the corresponding data field from the trustee data, the low number of points being less than the high number of points;

assigning no points when a data field from the loan servicer data does not match the corresponding data field from the trustee data;

calculating, by the data processing system, a total score based on the assigning of points for the matched claims;

applying, by the data processing system, a higher weight to the total score resulting from a comparison of the loan number data field and applying a lower weight to the debtor name data field, wherein the lower weight is less than the higher weight

designating the matched claim as being valid if the total score for the bankruptcy 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 the predetermined value

and providing, by the data processing system, payment disbursement instructions to the loan servicer using instructions from the trustee data for payments that are remitted by the trustee for each of the matched claims.

8. The computer-readable non-transitory storage medium of claim 7, 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.

9. The computer-readable non-transitory storage medium of claim 7, 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.