01 Aug 2014

Keep TDRs Accurate by Tracking Non-Dischargeable Debt in CaseLink Office

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How to Account for Non-Dischargeable Debt in CaseLink Office

Non-dischargeable debt is debt that cannot be eliminated through the bankruptcy process and is still owed to creditors by the debtor. One of the most common types of non-dischargeable debt is student loans. The example below will show you how to identify claims with non-dischargeable debt in CaseLink Office.

To find a claim, enter in the case name or case number in the Case search bar on the Homepage. Select the Claims option from the navigation tabs on the left edge of the screen to access the claim.

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To identify a claim with non-dischargeable debt, click on the box labeled Non-Dischargeable Debt. By checking this box, you will ensure that the unpaid claim balance will not be added to the chargeable debt; therefore, excluding these calculations from the Trustee Distribution Report (TDR).

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The Adjustments box (shown below) provides you with the flexibility to adjust the claims discharged without adding it to the payment total. Let’s look at a scenario where this option would be useful.

The debtor has unsecured credit card debt for $1,000.00 which would typically be dischargeable. However, the debtor took out a $300.00 cash advance 70 days before filing for bankruptcy. That makes this cash advance non-dischargeable.

To track this in CaseLink Office:

  1. Leave the the Non-Individual Cases box (shown below) unchecked.
  2. Add the non-dischargeable amount to the Adjustments box under the Dischargeable Amount box as a negative number (-$300.00 in this example). This will decrease the discharged amount and allow for the proper amount to be reflected in the Claims Discharged Without Payment box.

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Making this adjustment to the claim will also allow the TDR to accurately reflect the Claims Discharged Without Payment amount. In this example, the discharged amount was reduced by $300.00 to match the amount of the cash advance.

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Now that we’ve shown you how to account for non-dischargeable debt in CaseLink Office, you can make use of this feature in your practice. If you have any questions about how to make adjustment, you can contact your Account Manager directly or the BMS support Center via email email or call 800-634-7734, ext. 6.

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