01 Aug 2014

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

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How to Account for Non-Dischargeable Debt in CaseLink Web

Non-dischargeable debt is debt that cannot be eliminated through the bankruptcy process and is still owed to creditors by the debtor. The example below will show you how to identify claims with non-dischargeable debt in CaseLink Web.

Go to the Global Tool Bar and enter the case number or case name into the Search tab. Next, select the claim you need to view.

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To identify a claim with non-dischargeable debt, locate the Claim Memo section and click on the box labeled Non-Dischargeable Debt. Either in the Claim Memo or Note boxes, enter in the amount and reason for the non-dischargeable debt. By checking this box you will ensure that the unpaid claim balance will not be added to the chargeable debt, thus, excluding these calculations from the Trustee Distribution Report (TDR).

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The Claims Discharged Without Payment 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 $17,007.15, which would typically be dischargeable. However, the debtor took out a $300.00 cash advance 70 days before filing for bankruptcy, making this cash advance non-dischargeable.

This can be tracked in CaseLink Web by manually subtracting the amount from the claim and inputting the correct total in the Claims Discharged Without Payment box ($16707.15 instead of $17007.15, which was noted in the Claim Memo/ Note fields above). As you can see below, the total dischargeable debt was adjusted to include the non-dischargeable portion, which was manually adjusted to $16707.15. This will be the amount reflected in the TDR report.

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This adjustment will allows the TDR to accurately reflect the Claims Discharged Without Payment amount. In this example the discharged amount was reduced by $300.00, showing the portion of the credit card debt that is not dischargeable in the report.

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Now that we’ve shown you how to account for non-dischargeable debt in CaseLink Web, you can make use of this feature in your practice. If you need further assistance, you can contact the BMS support Center via email email or call 800-634-7734, ext. 6.

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