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In re Scott, BK 02-62305, Doc. #27

An application for unclaimed funds paid into the court’s registry by a trustee pursuant to 11 U.S.C. § 347(a) must show that the creditor has a present entitlement to the funds.  An applicant seeking unclaimed funds due to distributions 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.  Because the applicant has not done so, the application is denied without prejudice.  Any future application must be served on the debtors, their counsel, and the trustee.

File: 
Date: 
07/11/2006