05 Jun 2014

Control Distribution of Funds with Reserve Accounts in TrustWorks

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TrustWorks Tip:

Reserve Accounts in TrustWorks Help to Control Distribution of Funds

Trying to keep track of complex funds distribution for non-Chapter 7 cases can be a time-consuming process. Especially, if you’re having to calculate distributions using Excel spreadsheets. This manual process can be difficult and prone to errors; however, the built-in distribution calculation engine and support for reserve accounts in TrustWorks can make this process simple and seamless.

If you’re already a CaseLink Office user, TrustWorks will seem instantly familiar and easy-to-use since it’s built on the same core platform as CaseLink Office, but with more robust features – allowing you to work and manage more complex claims commonly associated with Chapter 11 and Receivership cases without the Chapter 7 restrictions in CaseLink Office.

A unique feature in TrustWorks, reserve accounts allow users to control the distribution of funds when interim distributions are calculated. At times, there may be specific reasons why some of the claims should not be paid. With some cases requiring the use of multiple distributions, the payment or non-payment of claims needs to be handled carefully, as they could be pending for multiple distributions before they are finally paid or dismissed. Examples of common situations in which reserve accounts could be used include:

  • Claims that have not yet been validated. The funds to pay these claims need to be set aside until the claim has been proven.
  • One or more claims have been objected to or may be pending lawsuits negating the claim. However, if the claim becomes validated then the money needs to be there to pay it.
  • Some claims have incomplete information. The claim cannot be paid in the upcoming interim distribution until the information is completed.
  • The use of a “diminimus check” reserve is needed. Some plans require checks under certain amounts (say $50) to not be paid. Checks for less than this amount can be put into a reserve account until the total for a specific claim exceeds the minimum – or when a final distribution is performed. Either situation would allow for the claim to be paid.
  • A W-9 may be required before a claim can be paid. In the interim, the amount can be placed into a reserve account until the W-9 is received.

In each of these cases, manually keeping track of this much information can be confusing and problematic.

If any of these situations sound familiar to you, then TrustWorks may be your solution to helping you easily manage complex non-Chapter 7 case distributions with simple automated processes. Contact your Account Manager or Morgan Wisbey at 800-634-7734, ext 2200 to learn why TrustWorks is right for you.