In re Scott, No. 02-62305, 2006 Bankr. LEXIS 1420 (N.D.Ga. July 11, 2006) (Bonapfel). The secured lender failed to claim $1783 of the Chapter disbursements to fully pay its pre-petition arrearage, and the trustee placed the funds in the registry of the court after the debtor completed his plan payments and received a discharge. The creditor later filed a request for the unclaimed funds. The application was denied —
A creditor applying for unclaimed funds must affirmatively show that it has a "present entitlement to the unclaimed funds sought." In re Acker, 275 B.R. 143, 145 (Bankr. D.D.C. 2002). A creditor does not have the required present entitlement if its claim has been paid, if there is no enforceable claim after foreclosure of its collateral, or if the debtor has brought the obligation current such that no payment is currently due. Thus, an applicant seeking unclaimed funds due to distributions that were made on account of a secured claim must show that the debt has not been satisfied (through payment or foreclosure) and that an amount is currently due and payable to which the unclaimed funds may lawfully be applied.
Claimant would meet these requirements if it has credited the Debtor’s loan account in the amount of the unclaimed funds, has treated the Debtor and the loan account as if it had timely claimed the payments, and has otherwise considered the maturity of the loan to have been reinstated upon cure of the arrearage in accordance with the Debtor’s plan. But the application does not establish this. And if all of this has not occurred, it is possible that the Claimant is not entitled to the funds, as discussed below.