HANDBOOK FOR CHAPTER 7 TRUSTEES
FORMS AND INSTRUCTIONS
This section describes the uniform financial record keeping and reporting system that the trustee must use. The system consists of the uniform transaction codes, akin to a uniform chart of accounts, and three primary records: the Individual Estate Property Record and Report (Form 1), the Cash Receipts and Disbursements Record (Form 2), and the Summary Interim Asset Report (Form 3). Utilizing these records, the trustee must provide an interim report to the United States Trustee at least annually.
This financial record keeping and reporting system applies to each chapter 7 asset case. A chapter 7 case is considered an asset case for the purposes of the record keeping and reporting requirements when either (1) the trustee is in possession of property or funds, or expects to receive property or funds, or (2) a no-asset report has not been filed with the United States Trustee and the court, and 60 days have passed since the initial examination of the debtor at the ï½§ 341(a) meeting.
1. At least annually, each chapter 7 trustee must submit to the United States Trustee an interim report for each case that is either expected to be or declared to be an asset case by the trustee, for each case in which the trustee has received funds of the estate, and for each case in which a no-asset report has not been filed and 60 days have passed since the initial examination of the debtor at the ï½§ 341(a) meeting.
2. The interim report consists of the Form 3, which is a summary listing of all pending asset cases, a Form 1 for each listed case, and a Form 2 for each case with an estate bank account. However, Form 1 and Form 2 do not need to be submitted if 1) a final account (TDR) was filed for an asset case during the current or prior reporting period, 2) a final report was filed for an asset case that was converted, dismissed, or reassigned during the current reporting period, or 3) a no-asset report (NDR) was filed for the case during the current reporting period. Such cases need only be listed on Form 3.
3. If a final report (TFR) was filed for an asset case that was not converted, dismissed or reassigned during the period, Form 1 and Form 2 should continue to be submitted for the current and future reporting periods until the TDR is filed. The United States Trustee will continue to monitor activity in the case after the TFR has been filed.
4. In summary, in each of the following instances, a case is to be listed on the Form 3 for the current reporting period and omitted from future reporting periods. Form 1 and Form 2 (if any) are not required to be submitted.
- A TDR is submitted to the United States Trustee during the current reporting period.
- An NDR is filed in a case that has been open longer than 60 days after the initial examination of the debtor at the ï½§ 341(a) meeting. (No-asset cases in which an NDR has been filed within 60 days of the initial examination of the debtor at the ï½§ 341 (a) meeting are not to be listed on Form 3.)
- A case that has been open longer than 60 days after the initial examination of the debtor at the ï½§ 341 (a) meeting and is converted, dismissed or reassigned during the current reporting period.
The interim report must be submitted to the United States Trustee no later than thirty days after the end of the reporting period. If the trustee cannot submit the report by the due date, the trustee should obtain a date specific extension in writing from the United States Trustee prior to the deadline. The United States Trustee will review the report within sixty days of receipt and provide a written notice of any deficiencies to the trustee. The noted deficiencies should be corrected within the requested time frame.
FRBP 2012(b) requires a successor trustee to file with the United States Trustee an accounting of the prior trustee's administration of the estate. This accounting should be a separate and distinct record of the activities which were solely within the control of the prior trustee. The rule does not have a deadline for submission of the accounting. Absent some evidence of defalcation or other harm to the estate, the accounting can be submitted in conjunction with the submission by the successor trustee of the standard reports required by the United States Trustee.
The trustee is required to use the current version of Forms 1, 2, and 3, as presented in this Handbook. Earlier versions, such as the pre-1992 Form 4, should not be utilized.
INDIVIDUAL ESTATE PROPERTY RECORD AND REPORT
When to Complete Form 1
This record must be maintained for every case that is either expected to be or declared to be an asset case by the trustee, for each case in which the trustee has received funds of the estate, and for each case in which a no-asset report (NDR) has not been filed and 60 days have passed since the initial examination of the debtor at the ï½§ 341(a) meeting.
How to Complete Form 1
The trustee should enter the case number, case name, trustee name, date filed or converted, first date set for the ï½§ 341(a) meeting, claims bar date, and the reporting period ending date, as indicated. With respect to the date filed or converted, the trustee should enter the later of the date the case was filed under chapter 7 or the date the case converted to chapter 7. This date should be identified as filed (f) or converted (c), as appropriate.
Column 1: Asset Description (Scheduled and Unscheduled Property)
Form 1 accounts for all property listed on the debtor's petition, schedules, and statement of financial affairs, as well as any assets identified by the trustee which were not listed by the debtor.
First, all assets of the debtor from the original petition, schedules, and statement of financial affairs should be listed. Similar types of assets (e.g., household goods) will often be lumped together by the debtor and may be listed as a group on Form 1, particularly if the trustee intends to administer them as a group. However, for ease of administration, most assets should be separately identified where possible. For example, the trustee will find it helpful to separately list each automobile and each piece of real property, even though the individual assets may have been reported together as a group in the petition, schedules, and statement of financial affairs. When an asset is jointly owned with a non-filing spouse or other party, Form 1 should reflect the debtor's interest (e.g., one-half) (10)
If, for example, the debtor lists the full value of a house and the debtor's interest is one-half, the asset description on Form 1, should state "ï½½ share, 852 Jones Street." Likewise, the values shown in Columns 2, 3, 5, and 6 should reflect the debtor's share.
Second, any assets added by the debtor on amended schedules and statements and any other assets identified by the trustee, but not included in the petition, schedules, and statement of financial affairs, should be listed. The term "unscheduled assets" refers to all estate assets that are not on the debtor's original schedules and statements. These unscheduled assets should be identified by a (u) following the asset description.
Third, in a case converted from chapter 11, assets reported in the final report required by FRBP 1019(5), or in any schedules submitted post-conversion, should be listed. If no such report or schedules are filed, the assets remaining in the case are to be listed. If the trustee is serving as a successor trustee, Form 1 should list all receipts or deposits turned over by the prior trustee as well as all property of the estate not administered by the prior trustee. The trustee should maintain a record in the estate file describing how the assets remaining in the case were determined.
Fourth, each type of income of an estate, such as post-petition interest, dividends, or rents, is to be shown as an unscheduled asset, separately from any pre-petition dividends or rents that were reported in the petition, schedules and statement of financial affairs. Accounting for these items on Form 1 will facilitate both the calculation of trustee compensation and the reconciliation between the Form 1 and Form 2 account balances.
To the left of each asset description, a reference number is inserted (beginning with #1 and following consecutively). As noted in the Computer Security section (paragraph 9.C.3.g), assets and reference numbers may not be deleted from Form 1. The asset description may be changed, if necessary, to properly reflect the nature of the asset. To correct an asset listed in error, delete the description and numerical information and enter an appropriate explanation such as "asset deleted by debtor amendment" or "asset entered in error." The reference numbers must be listed sequentially with no gaps.
Column 2: Petition/Unscheduled Values
Column 2 reflects the dollar value of each asset, whether assigned by the debtor in the original or amended petition, schedules, and statement of financial affairs or by the trustee in the case of assets not included in the schedules and statements. While scheduled values are often unreliable, they are the only valuation available until the trustee has the opportunity to obtain further information.
If the value assigned by the debtor in the schedules is "0," the trustee should enter "0" in Column 2. If the scheduled value is "unknown," the trustee should enter "unknown." Similarly, if the trustee cannot initially estimate a value for an unscheduled asset, the trustee should enter "unknown."
These entries should never be changed, even when the value later becomes known, unless the schedules or statement of financial affairs are amended by the debtor. (11)
Column 3: Estimated Net Value (Value Determined by Trustee Less Liens, Exemptions and Other Costs)
Column 3 records the value of each asset as determined by the trustee, minus any security interests, the debtor's allowed exemptions in the asset, and any other appropriate adjustment, such as costs to sell (if the value determined by the trustee minus these deductions is less than zero, enter "0"). This value represents the trustee's best estimate of the net sale or liquidation value of the asset. This column will be totaled to reflect the net dollar value determined by the trustee for all assets in the case.
At the beginning of administering a new case, the trustee may not always be able to estimate the value for an asset. When the value for a scheduled or unscheduled asset is unknown, the trustee should enter "unknown" in Column 3. By the end of the next reporting period, the trustee should be able to enter the value, as determined, less any security interests, exemptions, and other appropriate adjustments. Thereafter, the value should not change. The Column 3 value should never be changed to match the amount actually received from the sale or liquidation of the asset (e.g., the amount shown in Column 5).
Post-petition interest, dividends, and rent are exceptions to these requirements. Their Column 3 value may be designated "N/A".
The Column 3 total should equal the sum of all dollar values entered in Column 3.
Column 4: Property Abandoned
Column 4 is used to report the trustee's decision with respect to administering or abandoning each asset.
If Column 4 is left blank, it means that the trustee 1) intends to administer the asset, 2) has not decided whether to administer the asset or to abandon it pursuant to ï½§ 554, or 3) has already liquidated the asset (in which case a value should be reported in Column 5).
The trustee should enter "OA" in Column 4 to indicate property abandoned formally pursuant to ï½§ 554(a). A trustee will often formally abandon property that is burdensome to the estate, e.g., uninsured or contaminated property of no value that exposes the estate to potential liability or risk.
If the trustee intends to rely on ï½§ 554(c) and the closing of the case to abandon property that will not be administered, the trustee should use "DA" for deemed abandoned at close of case. An example of property that might be "deemed abandoned" is fully secured or exempt property that does not expose the estate to liability or risk.
It is recommended that the trustee add an explanation at the bottom of Form 1 for any entry that would obviously raise a question in the mind of a reviewer. For example, it would be helpful if the trustee would provide such explanations under the following scenarios: 1) an asset that has significant equity based on the schedules will not be administered because, on inspection, it was obviously not sellable, 2) an asset was not administered because the costs of recovery or of liquidation would exceed its value, or 3) the trustee discovered a lien not listed in the schedules which eliminated any equity in the property.
Column 5: Sales/Funds Received by the Estate
Column 5 indicates the gross amount of the proceeds from the sale or liquidation of each asset regardless of amounts that will be paid out to secured creditors or for expenses or as exemptions, whether paid out by the trustee directly or through a broker or auctioneer, etc. The amounts in Column 5 should be traceable to Form 2. This is accomplished by using the Form 1 reference number to identify the related transaction(s) on Form 2. For real property or auction sales, the gross proceeds are listed on Form 1, even though the trustee may have actually received the net proceeds, after deduction of costs and expenses.
If estate assets are sold together in a bulk sale, the trustee may receive a lump-sum remittance that does not provide a breakdown of the proceeds attributable to each asset. In this instance, the trustee should use his or her best judgment to allocate the remittance among the assets. See the sample Form for an example of this situation.
Column 6: Asset Fully Administered/Gross Value of Remaining Assets
When an asset has been fully administered (e.g., abandoned, sold, liquidated, or totally exempt), "FA" is entered in Column 6.
For assets still being administered by the trustee, Column 6 should reflect the trustee's current best estimate of the gross value remaining to be collected or administered. Guidelines for entries to this column follow:
- The Column 6 value is rarely the Column 3 value. The Column 3 value equals the trustee's estimated net value at the beginning of the case or when the asset is discovered. The Column 6 value is the trustee's current estimate of the gross remaining value of the asset. "Gross Remaining Value" means current fair market value without any deduction for liens, exemptions, and other costs.
- If "unknown" or "N/A" is entered in Column 3, "unknown" should appear in Column 6.
- The difference between Columns 3 and 5 is not intended to necessarily equal the figure recorded in Column 6.
The sum of the dollar figures in Column 6 is the Gross Value of Remaining Assets. This total is to be carried forward and reported on Form 3, Column 6.
Additional information is required at the bottom of Form 1. Under "Major Activities Affecting Case Closing," the trustee should provide information about matters pending in the case, such as:
1) Assets that will be abandoned and why;
2) Status of liquidation efforts: pending sales, hearing or auction dates, etc.;
3) Status of adversary actions and appeals;
4) Status of claims objections/claims review and tax returns; and
5) Any other actions necessary to complete administration of the case.
For the case's first reporting period, the trustee must disclose under "Initial Projected Date of Final Report (TFR)," a realistic estimate of when the TFR will be filed. For subsequent reporting periods, the trustee should enter both the initial and current projected dates for filing the TFR. The initial date should remain the same throughout the administration of the case.
ESTATE CASH RECEIPTS AND DISBURSEMENTS RECORD
When to Complete Form 2
The estate Cash Receipts and Disbursements Record (Form 2) is a combination checkbook-journal. A separate Form 2 should be maintained for each checking account, savings account, or Certificate of Deposit. No Form 2 is necessary until the bank account is opened.
Rollovers of individual Certificate of Deposits should be reported on the same Form 2. Should the trustee choose to keep any other type of account or investment vehicle, such choice should be discussed in advance of implementation with the United States Trustee and arrangements should be made for record keeping and reporting.
All transactions must be entered on Form 2, in chronological order, as soon as they occur. The trustee should not wait and enter transactions from the monthly bank statements. As noted in Financial Reporting and Record Keeping section (paragraph 9.B.2), transactions may not be back dated, except for interest, which should be posted within thirty days of the period to which it applies.
Form 2 submissions should contain all transactions from the beginning of the case until the end of the reporting period. However, the trustee may seek approval from the United States Trustee to limit the transactions in a Form 2 submission involving a very large or older case to the annual reporting period. Such approval would only be granted on a report-by-report basis.
If the trustee is serving as a successor trustee, Form 2 should begin with the balance turned over by the previous trustee, thereby remaining consistent with the successor trustee's bank statements.
How to Complete Form 2
The trustee should enter the case number, case name, tax identification number, period ending date, trustee name, bank name, account number and bond amount (per case limit if blanket bond and amount of separate bond, if applicable). Individual debtor social security numbers should not be listed as the estate tax identification number.
Column 1: Transaction Date
Column 1 is the date that the transaction occurred. For deposits, it is the date that the funds were sent or taken to the bank for deposit, rather than the date that the funds were received by the trustee or the date that the deposit cleared the bank. For disbursements, it is the date the trustee wrote (or printed) the check, rather than the date that the check cleared the bank.
Column 2: Check or Reference Number
Column 2 is the check number if the entry is for a payment made from estate funds or the reference number entered on Form 1, if the entry is for a deposit or an item returned for insufficient funds ("NSF").
Column 3: Paid to/Received From
Column 3 is the name of the payer or payee.
Column 4: Description of Transaction
Column 4 consists of two sub-columns-on the left, a narrative description of the transaction and, on the right, the applicable uniform transaction code (which is analogous to an account number in a bookkeeping system's chart of accounts).
The narrative description should be a complete description of the transaction, for example: "payment to auctioneer per 3/2/02 order," "sale of 1995 Dodge Intrepid subject to National Bank security interest per 4/15/02 notice," or "transfer of funds to savings account #09-43-02."
The uniform transaction code (UTC) is a seven-digit accounting code. The list starting at page Forms - 20 contains the UTCs applicable to all trustees. Additional sub-codes, not listed, may be required in the United States Trustee region where the trustee serves. General instructions for using the UTCs start at page Forms - 25. Additional specific instructions will be provided by the United States Trustee.
If the trustee receives a "net" check, that is, one which represents the gross sale price minus such deductions as lien pay-offs, exemptions or expenses, Column 4 should list the gross amount of the sale and all individual deductions. In that way, Column 4 will contain the information needed to reconcile the net amount received by the trustee with the gross sales price shown on Form 1. This situation most often arises when a broker or attorney receives the gross proceeds of sale and makes distributions for liens and expenses prior to presenting a net check to the trustee. In this type of situation, do not enter the gross amount in Column 5 Deposit because the amount shown as being deposited will not correspond to any bank statement. The net amount received by the trustee should be entered in Column 5.
For Certificates of Deposit, if the CD number changes when the CD is renewed or rolled over, the new CD number is recorded in Column 4.
Column 5: Deposit
Column 5 records the deposits received in the case. There are 24 UTCs that apply to deposits. UTCs in the 1100 series are used for receipts from the liquidation of assets that are listed by the debtor on the original schedules and statements. UTCs in the 1200 series are used for receipts from assets added on amended schedules and assets discovered by the trustee. Certificate of Deposit interest should only be recorded on Form 2 when earned and deposited in the bank account. It should not be estimated and recorded on Form 2 when the CD maturity date does not coincide with the reporting cut-off date.
Transfers into the account from another estate account are recorded in Column 5. The UTC for estate account transfers is 9999-000.
If a deposited item is returned for insufficient funds ("NSF") or an item was deposited in error to the estate, the reversal or correction should be recorded as a negative figure in Column 5 and the the entry should be explained in Column 4, Description of Transaction. The UTC for both a deposit made in error and its correction is 1280-002; the UTC for posting the NSF check is the same as the UTC used for the original deposit.
Column 6: Disbursement
Column 6 records the disbursements made in the case. Transfers out of the account to another estate account are also recorded in Column 6. The UTCs for disbursements are contained in the list starting at page Forms - 20. The UTC for estate account transfers is 9999-000.
If it is necessary to void a disbursement check, the reversal/correction should be recorded as a negative amount in Column 6 and the entry should be explained in Column 4, Description of Transaction. The UTC for the void transaction is the same as the UTC used for the original disbursement.
Column 7: Checking, Savings, or Certificate of Deposit Balance
Column 7 is the running balance in the checking, savings or certificate of deposit account.
At the end of the Form 2 for each account, the trustee should enter subtotals for Columns 5 and 6 and then show the deduction of bank transfers and payments to debtors to arrive at the net receipts and net disbursements for the account. On the last page of all Form 2s, the trustee should recap the net receipts, net disbursements, and account balances for all estate accounts in the case. These calculations will assist in determining trustee compensation and bonding requirements. The computations are illustrated in the sample Form 2s.
When to Complete Form 3
Trustees are required to file a Summary Interim Asset Report (Form 3) at least annually, unless the United States Trustee requires that it be filed more frequently. Form 3 is a summary listing of pending asset cases. It lists each case that is either expected to be or declared to be an asset case by the trustee, each case in which the trustee has received funds of the estate, and each case in which a no-asset report has not been filed and 60 days have passed since the initial examination of the debtor at the ï½§ 341(a) meeting. If a final account (TDR) was submitted or an NDR was filed, or the case was converted, dismissed, or reassigned, during the current reporting period, the case is to be listed on Form 3 for that reporting period, but omitted from Form 3 for future reporting periods. Cases are entered in sequence by case number.
Many of the entries on Form 3 are made from the Individual Estate Property Record and Report (Form 1) and the Estate Cash Receipts and Disbursements Record (Form 2). The key to preparing an accurate Form 3 is to make sure that Forms 1 and 2 are accurate and up-to-date for each case that is required to be included on Form 3. These Forms should be carefully reviewed and updated before Form 3 is prepared.
How to Complete Form 3
The trustee should enter the trustee's name, period ending date, blanket bond amount, and per case limit. The dollar amount of the blanket bond should be entered in the heading and not the word "blanket."
Column 1: Case No.
Column 1 records the bankruptcy case number.
Column 2: Case Name
Column 2 records the complete name of each debtor, including a DBA or AKA, if needed to identify the debtor.
Column 3: Date Filed (f) or Converted (c) to Chapter 7
Column 3 records the later of the date the case was filed under chapter 7 or the date the case converted to chapter 7. The letter (f) for the filing date or the letter (c) for the conversion date is to be entered beside the appropriate date in Column 3.
Column 4: Total Funds on Deposit or Invested (from Form 2)
Column 4 contains the balance of funds on hand in all estate bank accounts as of the end of the reporting period. This total is obtained from the last page of all Form 2s.
Column 5: Amount of Separate Bond (if any)
Column 5 should list the amount of any separate/additional bond obtained in a case.
Column 6: Gross Value of Remaining Assets (from Form 1)
Column 6 should list the gross value of all remaining assets in each estate. This value is obtained from Column 6 on Form 1.
Column 7: Date of Estimated (e) or Actual Disposition
Column 7 contains the order entry date if the case was converted (C), dismissed (D), or reassigned (R). Otherwise, Column 7 contains the date of submission of the final report (TFR), final account (TDR), or no-asset report (report of no distribution or NDR). If the TFR has not been submitted, the estimated (e) TFR date should be shown.
PART A SAMPLE FORM 4 Version 2, 12/1/01
Distribution Report for Closed Asset Cases
Case No. 3990165432 Trustee Name: Jenny Ward
Case Name: John L. & Sally B. Doe Date Submitted: 12/31/01
Date Filed/Converted to Ch. 7: 07/01/01
|$ AMOUNT |
|% OF |
|Funds Paid to Debtor|
|Funds Paid to 3rd Parties||0.00||0.00%|
|$ AMOUNT |
|% OF |
|Personal Property & Intangibles||33,000.00||33,000.00||3.30%|
|Internal Revenue Service Tax Liens||0.00||0.00||0.00%|
|Other Governmental Tax Liens||3,000.00||3,000.00||0.30%|
|TOTAL SECURED CLAIMS||$436,000.00|| |
|CHAPTER 7 ADMINISTRATIVE FEES ï½§ 507(a)(1) and|
|CHARGES under Title 28, Chapter 123:|
|Legal Fees & Expenses:|
|Trustee's Firm Legal Fees||0.00||0.00||0.00%|
|Trustee's Firm Legal Expenses||0.00||0.00||0.00%|
|Other Firm's Legal Fees||25,000.00||25,000.00||2.50%|
|Other Firm's Legal Expenses||1,500.00||1,500.00||0.15%|
|Accounting Fees and Expenses|
|Trustee's Firm Accounting Fees||0.00||0.00||0.00%|
|Trustee's Firm Accounting Expenses||0.00||0.00||0.00%|
|Other Firm's Accounting Fees||4,000.00||4,000.00||0.40%|
|Other Firm's Accounting Expenses||0.00||0.00||0.00%|
|Real Estate Commissions||25,000.00||25,000.00||2.50%|
|Other Professional Fees/Expenses||1,000.00||1,000.00||0.10%|
|Expenses of Operating Business in Chapter 7||0.00||0.00||0.00%|
|Income Taxes - Internal Revenue Service||5,000.00||5,000.00||0.50%|
|Other State or Local Taxes||0.00||0.00||0.00%|
|U.S. Trustee Fees||0.00||0.00||0.00%|
|TOTAL CHAPTER 7 ADMINISTRATIVE FEES & EXPENSES||$147,330.00||$147,330.00||14.73%|
|TOTAL PRIOR CHAPTER ADMINISTRATIVE FEES ï½§ 507(a)(1)|
|(From attached Part B)||0.00||0.00||0.00%|
|WAGES ï½§ 507(a)(3)||9,200.00||9,200.00||0.92%|
|CONTRIBUTIONS: EMPLOYEE BENEFIT PLANS ï½§ 507(a)(4)||900.00||1,900.00||0.09%|
|ALIMONY & CHILD SUPPORT ï½§ 507(a)(7)||4,600.00||4,600.00||0.46%|
|CLAIMS OF GOVERNMENTAL UNITS ï½§ 507(a)(8)||25,000.00||25,000.00||2.50%|
|OTHER ï½§ 507 (a)(2), (5), (6), & (9)||0.00||0.00||0.00%|
|TOTAL PRIORITY CLAIMS ï½§ 507(a)(3) to ï½§ 507 (a)(9)||$39,700.00||$39,700.00||3.97%|
|GENERAL UNSECURED CLAIMS||$1,200,000.00||$373,570.00||37.36%|
PART A SAMPLE FORM 4 Version 2, 12/1/01
Distribution Report for Closed Asset Cases
Case No. 3990165432 Trustee Name: Jenny Ward
Case Name: John L. & Sally B. Doe Date Submitted: 12/31/01
Date Filed/Converted to Ch. 7: 07/01/01
|$ AMOUNT |
|% OF |
|PRIOR CHAPTER ADMINISTRATIVE FEES ï½§ 507(a)(1)|
|Legal Fees & Expenses:|
|Trustee's Firm Legal Fees||0.00||0.00||0.00%|
|Trustee's Firm Legal Expenses||0.00||0.00||0.00%|
|Other Firm's Legal Fees||0.00||0.00||0.00%|
|Other Firm's Legal Expenses||0.00||0.00||0.00%|
|Accounting Fees and Expenses|
|Trustee's Firm Accounting Fees||0.00||0.00||0.00%|
|Trustee's Firm Accounting Expenses||0.00||0.00||0.00%|
|Other Firm's Accounting Fees||0.00||0.00||0.00%|
|Other Firm's Accounting Expenses||0.00||0.00||0.00%|
|Real Estate Commissions||0.00||0.00||0.00%|
|Other Professional Fees/Expenses||0.00||0.00||0.00%|
|Income Taxes - Internal Revenue Service||0.00||0.00||0.00%|
|Other State or Local Taxes||0.00||0.00||0.00%|
|TOTAL PRIOR CHAPTER ADMINISTRATIVE FEES||$0.00||$0.00||0.00%|
CASES COVERED Form 4 is required for all chapter 7 asset cases. It is submitted with the final account (TDR). Form 4 should not be submitted for cases dismissed or converted to another chapter. Form 4 must be filed electronically and in paper form.
HEADER INFORMATION Enter the case number, case name, trustee name, date filed/converted to chapter 7, and date submitted. (Additional information is entered for the electronic Form 4; contact the United States Trustee for further information.)
CLAIMS Allowed claims for which a distribution was made. Zeroes (0's) would be inserted under "Claims" and "$ Amount Paid" for each claim category in which no amount was paid. (For example, if there is only sufficient funds to pay administrative and priority unsecured claims, the amount of each allowed administrative and priority unsecured claim would be shown under "Claims," and the amount of funds distributed on account of such claims would be shown under "$ Amount Paid." Zeroes (0's) would be inserted under "Claims" and "$ Amount Paid" for General Unsecured Claims.)
% OF RECEIPTS The formula for this column is:
$ Amount Received" or "$ Amount Paid" (whichever applies)
All percentages under "% of Receipts" should be based on this formula. The percentages for totals and subtotals (e.g., Total Secured Claims) may not equal the sum of the individual component percentages, due to rounding.
GROSS RECEIPTSAll funds received by trustee (12), except for funds depositedto the estate in error and refunds of trustee overpayments (an example is a refund of excess bond premium which should be netted against the applicable expense line item).
Funds Paid to Debtor:
Exemptions: Funds disbursed to debtor(s) pursuant to exemptions permitted under Federal or State law.
Excess Funds: Funds disbursed to debtor(s), if any, after all other disbursements made.
to 3rd Parties: Funds, other than exemptions and excess funds, disbursed to the debtor, and funds disbursed or turned over in the case by the trustee to third parties who are not parties in interest. Examples may include: payments to non-debtor spouses or other non-debtor co-owners from sales of property in which they have an interest; escrow and other deposit refunds; and tax refunds where a portion belongs to the debtor. Funds disbursed in this category may or may not be compensable, depending upon the facts of the case.
NET RECEIPTS: The sum of gross receipts less funds paid to debtor and funds paid to 3rd parties. The amount of net receipts equals total disbursements, which may be the basis for computing the maximum trustee fee.
SECURED CLAIMS (13):
Real Estate: Funds disbursed to all pre-petition lien holders, except for tax liens.
Personal Property & Intangibles: Funds disbursed to all pre-petition lien holders, except for tax liens.
Internal Revenue Service Tax Liens: Funds disbursed to all pre-petition lien holders. (Do not include payment of tax claims which became due after petition date. Said tax payments should be included in Chapter 11 or Chapter 7 tax categories, depending on the date the taxes became due.)
Other Governmental Tax Liens: Funds disbursed to all pre-petition lien holders.(Do not include payment of tax claims which became due after petition date. Said tax payments should be included in Chapter 11 or Chapter 7 tax categories, depending on the date the taxes became due.)
TOTAL SECURED CLAIMS: The sum of total secured claims by column.
507(a)(1) and CHARGESunder Title 28, Chapter 123:Trustee Fees: Total fees paid to trustee pursuant to ï½§ 330(a).
Trustee Expenses: Total interim and final expense reimbursements paid directly to the trustee pursuant to ï½§ 330(a).
Legal Fees & Expenses: Trustee's Firm Legal
Fees: All legal fees paid to trustee or trustee's firm.
Trustee's Firm Legal Expenses: All legal expenses paid to trustee or trustee's firm.
Other Firm's Legal Fees: All legal fees paid to other firms.
Other Firm's Legal Expenses: All legal expenses paid to other firms.
Accounting Fees & Expenses: Trustee's Firm
Accounting Fees: All accounting fees paid to trustee or trustee's firm.
Trustee's Firm Accounting Expenses: All accounting expenses paid to trustee or trustee's firm.
Other Firm's Accounting Fees: All accounting fees paid to other firms.
Other Firm's Accounting Expenses: All accounting expenses paid to other firms.
Real Estate Commissions: All commissions and expenses paid to professionals for the sale of real property.
Auctioneer/Liquidator Fees: All fees paid to auctioneer or liquidator of personal property.
Auctioneer/Liquidator Expenses: All expenses paid to auctioneer or liquidator of personal property.
Other Professional Fees/Expenses: All other professional fees and expenses paid. (In order to be included in this category, fees and expenses must be paid only to professional employed pursuant to ï½§ 327 of the Code, and not be included in one of the other fee and expenses categories. For example, professional fees and expenses for appraisers and expert witnesses should be included in this category.)
Expenses of Operating
Business in Chapter 7: All costs of operating a business pursuant to Bankruptcy Court order, except professional fees and expenses specifically listed above. Includes payroll taxes paid in connection with operating a business in chapter 7.
Other Expenses: All other allowed expenses not otherwise included under Trustee Expenses, including bond premiums and other costs paid directly by the estate, but not including taxes, court costs, and unpaid United States Trustee fees.
Income Taxes - Internal Revenue Service: All income taxes which first become due to the IRS after the bankruptcy petition filing date.
Other State or Local Taxes: Other state or local taxes which first become due after the bankruptcy petition filing date.
United States Trustee Fees: All U.S. Trustee Chapter 11 fees paid by the trustee in chapter 7 proceeding.
Court Costs: All costs paid by the trustee to the Bankruptcy Court, including noticing fees, filing fees, etc.
TOTAL CHAPTER 7 ADMINISTRATIVE FEES & CHARGES: The sum of chapter 7 administrative fees and charges by column.
TOTAL PRIOR CHAPTER ADMINISTRATIVE FEES 507(a)(1): See Part B below.
WAGES ï½§507(a)(3): Wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an individual. (See Code for specific requirements)
EMPLOYEE BENEFIT PLANS ï½§507(a)(4): Payments to an employee benefit plan. (See Code for specific requirements.)
ALIMONY & CHILD SUPPORTï½§507(a)(7): Payments to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child. (See Code for specific requirements)
CLAIMS OF GOVERNMENTAL UNITS ï½§507(a)(8): Payments to governmental units, only to the extent that such claims are for - (a) a tax on or measured by income or gross receipts; (b) a property tax; (c) a tax required to be collected or withheld for which the debtor is liable; (d) an employment tax; (e) an excise tax; (f) a customs duty arising out of the importation of merchandise; or (g) a penalty related to a claim specified in ï½§507(a)(8). (See Code for specific requirements.)
OTHER ï½§507(a)(2), (5), (6), & (9): (See Code)
TOTAL PRIORITY CLAIMS: The sum of total priority claims by column.
GENERAL UNSECURED CLAIMS: All unsecured claims paid.
TOTAL DISBURSEMENTS: The sum of total secured, priority, and unsecured claims
ï½§507(a)(1): PART B (Prior Chapter Administrative) instructions are essentially the same as the PART A (Chapter 7 Administrative) instructions. Note that chapter 11 payroll taxes paid during the pendency of chapter 7 should be reported under "Operating Expenses" in Part B.
The Uniform Transaction Codes (UTCs) are seven-digit codes designed to track estate receipts and disbursements. They are analogous to the account numbers used in a bookkeeping system's chart of accounts. The UTCs standardize the coding schemes currently used by chapter 7 trustees and become fully effective on July 1, 2002.
UTCs are assigned to each Form 2 transaction as it is recorded. The first four digits of the UTC represent the "primary" code that is used by trustees in all United States Trustee regions. The next two digits of the UTC represent a sub-code, which will vary by region. The last digit is called a wildcard and will vary by type of transaction (0 = normal, compensable transaction; 1 = unclaimed funds turned over to Clerk; 2 = non-compensable transaction). For the trustee's reference, some general instructions are included in this section of the Handbook, starting at page Forms - 25. Specific instructions for using the UTCs, particularly the sub-codes and wildcards, will be provided by the United States Trustee.
The UTCs are designed with the Form 4 in mind. That is, they "roll-up" into the Form 4 categories, as shown in the following table:
UNIFORM TRANSACTION CODES
The portion of the code delineated as "xxx," "xx2," or "00x"
varies by region and by type of transaction. See the
United States Trustee for further information.
|GROSS RECEIPTS|| |
|1110-00x||Liquidation of Real Property (Schedule A)|
|1121-00x||Notes and Accounts Receivable|
|1123-00x||Royalties and Dividends|
|1129-00x||Liquidation of Other Schedule B Property|
|1130-00x||Revenue from Operating Chapter 7|
|1141-00x||Preference/Fraudulent Transfer Litigation|
|1142-00x||Personal Injury Litigation|
Assets Not Originally Scheduled
|1210-00x||Liquidation of Real Property|
|1221-00x||Notes and Accounts Receivable|
|1223-00x||Royalties and Dividends|
|1229-00x||Liquidation of Other Personal Property|
|1230-00x||Revenue from Operating Chapter 7|
|1241-00x||Preference/Fraudulent Transfer Litigation|
|1242-00x||Personal Injury Litigation|
|1270-00x||Interest Income (from estate accounts/investments)|
|FUNDS PD. TO DEBTOR||8100-002||Exemptions|
|8200-xx2||Surplus Funds Paid to Debtor ï½§726(a)(6)|
|FUNDS PD TO 3RD PARTIES||8500-00x||Funds Paid to Third Parties|
|Real Estate||4110-00x||Real Estate-Consensual Liens (mortgages, deeds of trust)|
|4120-00x||Real Estate-Non-consensual Liens (judgments)|
|Pers. Prop./Intangibles||4210-00x||Personal Property and Intangibles-Consensual Liens|
|4220-00x||Personal Property and Intangibles-Non-consensual Liens|
|IRS Tax Liens||4300-00x||Internal Revenue Service Tax Liens (pre-petition)|
|Other Gov. Tax Liens||4700-00x||Real Property Tax Liens (pre-petition)|
|4800-00x||State and Local Tax Liens (pre-petition, not real property)|
|PRIORITY CLAIMS-CHAPTER 7 ADMIN. FEES/EXP|
|Trustee Fees||2100-00x||Trustee Compensation|
|Trustee Expenses||2200-00x||Trustee Expenses|
|Legal Fees-Trustee Firm||3110-00x||Attorney for Trustee Fees (Trustee Firm)|
|Legal Exp.-Trustee Firm||3120-00x||Attorney for Trustee Expenses (Trustee Firm)|
|Legal Fees-Other Firm||3210-xxx||Attorney for Trustee Fees (Other Firm)|
|Legal Exp.-Other Firm||3220-xxx||Attorney for Trustee Expenses (Other Firm)|
|Acct. Fees-Trustee Firm||3310-00x||Accountant for Trustee Fees (Trustee Firm)|
|Acct. Exp-Trustee Firm||3320-00x||Accountant for Trustee Expenses (Trustee Firm)|
|Acct. Fees-Other Firm||3410-xxx||Accountant for Trustee Fees (Other Firm)|
|Acct. Exp.-Other Firm||3420-xxx||Accountant for Trustee Expenses (Other Firm)|
|Real Estate Comm.||3510-00x||Realtor for Trustee Fees|
|3520-00x||Realtor for Trustee Expenses|
|Auctioneer/Liquid. Fees||3610-00x||Auctioneer for Trustee Fees|
|3630-00x||On-line Auctioneer for Trustee Fees|
|Auctioneer/Liquid. Exp||3620-00x||Auctioneer for Trustee Expenses|
|3640-00x||On-line Auctioneer for Trustee Expenses|
|Other Prof. Fees/Exp.||3701-00x||Attorney for Debtor Fees|
|3702-00x||Attorney for Debtor Expenses|
|3711-00x||Appraiser for Trustee Fees|
|3712-00x||Appraiser for Trustee Expenses|
|3721-00x||Arbitrator/Mediator for Trustee Fees|
|3722-00x||Arbitrator/Mediator for Trustee Expenses|
|3731-xxx||Consultant for Trustee Fees|
|3732-xxx||Consultant for Trustee Expenses|
|3991-xxx||Other Professional Fees|
|3992-xxx||Other Professional Expenses|
|Exp. of Operating Ch. 7||2690-xxx||Chapter 7 Operating Case Expenses|
|Other Expenses||2300-00x||Bond Payments|
|2410-00x||Administrative Rent (post-petition storage fees, leases)|
|2420-xxx||Costs to Secure/Maintain Property ( insurance, locks, etc.)|
|2500-00x||Costs re Sale of Property (closing costs, etc. not realtor comm.)|
|2990-xxx||Other Chapter 7 Administrative Expenses|
|Income Taxes-IRS||2810-00x||Income Taxes - Internal Revenue Service (post-petition)|
|Other State/Local Taxes||2820-00x||Other State or Local Taxes (post-petition)|
|US Trustee Fees||2950-00x||US Trustee Quarterly Fees|
|Court Costs||2700-00x||Clerk of the Court Costs|
|PRIOR CHAPTER ADMIN FEES/EXP. (Use the UTCs in this section only for expenses incurred under a prior chapter and unpaid at the time of conversion to chapter 7.)|
|Trustee Fees||6101-00x||Trustee Compensation|
|Trustee Expenses||6102-00x||Trustee Expenses|
|Legal Fees-Trustee Firm||6110-00x||Attorney for Trustee Fees (Trustee Firm)|
|Legal Exp.-Trustee Firm||6120-00x||Attorney for Trustee Expenses (Trustee Firm)|
|Legal Fees-Other Firm||6210-xxx||Attorney for Trustee/DIP Fees (Other Firm)|
|Legal Exp.-Other Firm||6220-xxx||Attorney for Trustee/DIP Expenses (Other Firm)|
|Acct. Fees-Trustee Firm||6310-00x||Accountant for Trustee Fees (Trustee Firm)|
|Acct. Exp-Trustee Firm||6320-00x||Accountant for Trustee Expenses (Trustee Firm)|
|Acct. Fees-Other Firm||6410-xxx||Accountant for Trustee/DIP Fees (Other Firm)|
|Acct. Exp.-Other Firm||6420-xxx||Accountant for Trustee/DIP Expenses (Other Firm)|
|Real Estate Comm.||6510-00x||Realtor for Trustee/DIP Fees|
|6520-00x||Realtor for Trustee/DIP Expenses|
|Auctioneer/Liquid. Fees||6610-00x||Auctioneer Fees|
|6630-00x||On-line Auctioneer Fees|
|Auctioneer/Liquid. Exp.||6620-00x||Auctioneer Expenses|
|6640-00x||On-line Auctioneer Expenses|
|Other Prof. Fees/Exp.||6700-xxx||Other Professional Fees|
|6710-xxx||Other Professional Expenses|
|Income Taxes-IRS||6810-xxx||Income Taxes - Internal Revenue Service|
|Other State/Local Taxes||6820-xxx||Other State or Local Taxes|
|Operating Expenses||6910-00x||Trade Debt|
|6920-00x||Administrative Rent (post-petition storage fees, leases)|
|6950-xxx||Other Operating Expenses|
|Other Expenses||6990-00x||Other Prior Chapter Administrative Expenses|
|ï½§ 507(a)(3)||5300-00x||Wages ï½§ 507(a)(3)|
|ï½§ 507(a)(4)||5400-00x||Contributions to Employee Benefit Plans ï½§ 507(a)(4)|
|ï½§ 507(a)(7)||5700-00x||Alimony & Child Support ï½§ 507(a)(7)|
|ï½§ 507(a)(8)||5800-00x||Claims of Governmental Units ï½§ 507(a)(8)|
|ï½§ 507(a)(2), (5), (6),& (9)||5200-00x||Unsecured Claims Allowed Under ï½§ 502(f) to ï½§ 507(a)(2)|
|5500-00x||Unsecured Claims of Farmers/Fisherman ï½§ 507(a)(5)|
|5600-00x||Deposits ï½§ 507(a)(6)|
|5900-00x||Federal Depository Institutions ï½§ 507(a)(9)|
|GENERAL UNSECURED CLAIMS|
|7100-xxx||General Unsecured ï½§ 726(a)(2)|
|7200-00x||Tardy General Unsecured ï½§ 726(a)(3)|
|7300-00x||Fines, Penalties ï½§ 726(a)(4)|
|7400-00x||Subordinated General Unsecured|
|7990-00x||Surplus Case Interest on Unsecured Claims (including priority)|
1) The purpose of the Uniform Transaction Codes (UTCs) is to standardize the coding systems already used by trustees.
2) The UTC is a seven-digit code consisting of the four-digit "primary" code, a two-digit sub-code, and a wildcard code. The UTC is assigned to each Form 2 transaction as it occurs. Some transactions will have multiple UTCs (e.g., sale of real property, sale of a group of assets for a lump-sum price, payment of professional fees and expenses).3) The generic or default format of the UTC in printed reports (e.g., Form 2) is the four-digit code followed by a dash and the sub-code/wildcard code (e.g., 1110-000). The format of the UTC in electronic transmissions to the United States Trustee is two fields: the "primary" four-digit code in one field, with the sub-code and wildcard code in a second field.
4) All of the "primary" four-digit codes are required. In practice, trustees will probably find that they routinely use about 20 - 40 of the primary codes. The remaining codes will apply less often, usually to unique transactions. If trustees have questions about which primary code to use, they should consult their United States Trustee contact person.
5) Sub-codes are primarily used to provide the additional information required by a region or field office for its particular TFRs and TDRs. "00" means no sub-code. The sub-codes used vary by region. Further information about the sub-codes will be provided by the United States Trustee.
6) Wild-cards have the following specific purposes:
a. "0" means no wildcard.
b. "1" is used for unclaimed funds turned over to the court. For example, assume a trustee has been unable to locate a real estate secured creditor. The original payment to this creditor was coded as 4120-000. The trustee issues as stop payment on the check, reverses it in the computer system, and issues a new check to turnover to the court the unclaimed funds. The new check is coded as 4120-001. This "wildcard" is required in every region.
c. "2" is used to identify non-compensable receipts and disbursements. This wildcard also is required in every region.
d. "3" is for voids and "4" is for stop payments. Usage is limited. The trustee's chapter 7 computer service provider, or United States Trustee contact person, will advise the trustee when these wildcards need to be used. If used, the original transaction and the reversing transaction must have the same wildcard. It works as follows: assume that the trustee had to re-issue the check to the real estate secured creditor. The UTC for the original check was 4120-000. When the stop payment was issued, the UTC for the original check was changed to 4120-004. The reversing entry was coded as 4120-004. The replacement check was coded as 4120-000.
7) Using the UTCs in special situations:
a. Refunds of amounts previously paid by the trustee: This type of transaction should have the same UTC as the original payment. (These refunds are not part of Gross Receipts.) In addition, this type of refund should be recorded on Form 2 as a negative disbursement. Examples-the refund of an over-disbursement to a creditor or a return premium when an insured asset is sold.
b. Funds deposited to the estate in error and the check to transfer the funds to the correct estate should use 1280-002. The check should be recorded as a negative deposit.
c. NSF checks should have the same UTC as the original receipt and should be recorded as negative deposits.
d. Reversals/voids of deposit transactions should be recorded as negative deposits.
e. Reversals/voids of disbursement transactions should be recorded as negative disbursements.
f. Distributions under $5 that are turned over to the court should be coded according to the type of payment. Do not use the UTCs for unclaimed funds or court costs.
g. Unclaimed funds turned over to the court have the same UTC as the one used for the original payment that went unclaimed, plus it must always include wildcard 1.
h. Non-compensable receipts and disbursements must always include wildcard 2, with one exception. If a non-compensable payment goes unclaimed, the replacement check turned over to the court should include wildcard 1, rather than wildcard 2. Example: a debtor does not cash a check representing surplus estate funds. The trustee has been unable to find the debtor. As a result, the trustee turns the funds over to the court. On Form 2, both the original check to the debtor and the reversing entry use UTC 8200-002. The net check to turn the funds over to the court is coded with UTC 8200-001.
To simplify the presentation of the examples in the remainder of these instructions, the wildcard is assumed to be 0 (or 2, when clearly applicable). The trustee should use the appropriate wildcard when coding a real transaction, despite what is shown in the example. As noted above, United States Trustee staff will provide additional guidance concerning the sub-codes required in their region/jurisdiction.
1) There are 24 "primary" UTCs for receipts, divided into codes for receipts from "Scheduled Assets" and codes for receipts from "Assets Not Originally Scheduled" (unscheduled assets).
a. The UTCs under the sub-heading "Scheduled Assets" are used for the liquidation of assets listed on the debtor's original schedules and statements.
b. The UTCs under the sub-heading "Assets Not Originally Scheduled" are used for the liquidation of assets added by the debtor on amended schedules and statements and for assets discovered by the trustee. (Note that this involves a procedural change. "Unscheduled" has been clarified to mean "not originally scheduled," and a "u" will be used on Form 1 to designate these assets.)
2) The UTCs for Liquidation of Real Property (1110-000 and 1210-000) and Liquidation of Other Personal Property (1129-000 and 1229-000) are used for the liquidation of real and miscellaneous personal property (that is not covered by another UTC) and also for the sale back to the debtor of the equity in the asset. For example, use 1129-000 or 1229-000 when the debtor makes monthly installments to pay off the equity in a personal vehicle, in lieu of turning over the vehicle to the trustee.
3) Use 1229-000 for unscheduled miscellaneous refunds such as utility refunds.
4) Use 1180-00x and 1280-00x for non-estate receipts. Examples include: (1) funds deposited to the estate in error (1280-002); (2) bids or earnest money from unsuccessful bidders (1180-002 or 1280-002, depending on whether the related asset is scheduled or unscheduled); and (3) the portion of a tax refund that belongs to the debtor (1180-00x or 1280-00x, depending on whether the tax refund is scheduled or unscheduled; x = 0 or 2, depending on the facts of the case).
5) Use 1290-000 for miscellaneous receipts not covered by the other UTCs. Examples include: (1) funds turned over to the chapter 7 trustee by a prior chapter trustee (e.g., in a converted case), and (2) funds turned over to a successor chapter 7 trustee by the prior chapter 7 trustee in the case. In those jurisdictions that require sub-code 01, use 1290-010 for funds turned over to the chapter 7 trustee in a converted case.6) Do not use wildcard "2" to designate the exempt portion of sale proceeds. For example, if a scheduled car subject to a $2,000 exemption is sold for $5,000, UTC 1129-000 is used for the full sale price of $5,000.
Funds Paid to Debtor
1) Use 8100-002 for the exemptions paid to the debtor.
2) Use 8200-002 when surplus funds are paid to the debtor(s), including shareholders and limited partners. However, use 8200-052 in those jurisdictions that require separate disclosure and tracking of payments to equity security holders. Trustees in all jurisdictions use 8200-002 for the payment of surplus funds to individual debtors.
3) If other payments are made to the debtor, use 8500-00x. See the next section for further information.
Funds Paid to Third Parties (including the debtor)
1) Use 8500-00x to record funds, other than exemptions and excess funds, disbursed to the debtor, and funds disbursed or turned over in the case by the trustee to third parties who are not parties in interest. Examples may include: payments to non-debtor spouses or other non-debtor co-owners from sales of property in which they have an interest; escrow and other deposit refunds; and tax refunds where a portion belongs to the debtor. Funds disbursed in this category may or may not be compensable, depending upon the facts of the case.
2) If the payments are not compensable, use wildcard 2, as in 8500-002.
3) Do not use this UTC for the payment of exemptions or excess funds to the debtor. See the previous section for the UTCs to use.
1) Real Estate - UTCs are provided for payments of consensual liens, such as mortgages and deeds of trustee (4110-000), and for payments of non-consensual liens, such judgments and mechanics liens (4120-000).
2) Personal Property & Intangibles - UTCs are provided for payments of consensual liens, such as UCC and chattel (4210-000), and for payments of non-consensual liens, such as judgments and storage liens (4220-000).
3) IRS Tax Liens and Other Government Tax Liens: UTCs are provided for pre-petition IRS secured tax liens (4300-000); pre-petition secured real property tax liens (4700-000); and pre-petition secured income, sales, personal property, and other state/local tax liens (4800-000).
4) Some jurisdictions use sub-code 07 to break-out "ï½§ 724(b) Certain Secured Tax Claims." This sub-code may be used with primary code 4300, 4700, and 4800.
Priority Claims: Chapter 7 Administrative Fees and Expenses - While most of these UTCs are self-explanatory, some need further elaboration:
1) Sub-codes are not used for Trustee Compensation and Expenses, Legal Fees and Expenses, Accounting Fees and Expenses, Realtor Fees and Expenses, and Auctioneer Fees and Expenses, with two exceptions. Some jurisdictions require a break-out of Special Counsel and Special Accountant for Trustees. Accordingly, sub-codes have been created for these items.
a. To illustrate how these UTCs are used, assume that a trustee retains an outside firm to handle general legal matters for the estate and special counsel to handle a personal injury suit. The fees paid to the outside firm are coded as 3210-000, and the fees to the special counsel are coded as 3210-600.
b. If the sub-codes are not required in a jurisdiction, special counsel fees are coded under 3210-000.
2) There are some special considerations for Other Professional Fees and Expenses. This line item is broken down into 5 categories:
Attorney for Debtor
Appraiser for Trustee
Arbitrator/Mediator for Trustee
Consultant for Trustee
3) Some jurisdictions require that Consultant for Trustee be split between Financial Consultants and other Consultants. In such jurisdictions, use 3731-420 for Financial Consultant for Trustee Fees and 3731-000 other Consultant for Trustee Fees. In all other jurisdictions, use 3731-000 all Consultant for Trustee Fees. (The same logic applies to the UTCs for Consultant for Trustee Expenses.)
4) For payments to Other Professionals, use 3991-000 for fees and 3992-000 for expenses. However, some jurisdictions require a further breakdown. Eleven sub-codes have been provided under both fees and expenses to accommodate the needs of these jurisdictions. Use "000" whenever one of the eleven sub-codes is not used by the region. Note:
a. It is understood that payments to "other professionals" will not be consistently coded. For example, fees paid to a Collection Agent for Trustee will be coded as 3991-000 in one locale and as 3991-320 in another locale.
b. It is important to remember that the purpose of the "other professional" sub-codes is to capture the information locally for the TFR, TDR, and similar reasons. The purpose is not to track a miscellaneous professional type for national statistical
reporting purposes. If it later becomes desirable to capture this information nationally, a four-digit primary code (like 3701-000 for Attorney for Debtor Fees) will be established.
5) Generally, use 2690-000 for all expenses of operating chapter 7 cases. Some jurisdictions have specified sub-codes for management company fees (2690-460) and expenses (2690-470), and administrative wages, including tax and other withholdings (2690-720) and related employer payroll taxes (2690-730). All other operating chapter 7 expenses go under 2690-000.
6) Regarding the UTCs for Other Expenses:
a. The UTC for Bond Payments (2300-000) includes premiums for blanket bonds and separate case bonds.
b. Admin. Rent (2410-000) refers to post-petition storage fees, leases, and similar expenses.
c. Costs to Secure/Maintain Property (2420-000) covers both real and personal property and includes casualty insurance, locksmiths, utilities, security personnel, repairs, and similar expenses. It also includes costs to maintain the property while it is rented (unless related to an operating case) and maintenance costs while the property is held for sale (costs such as security or mowing the grass). Several jurisdictions require that insurance be separately disclosed in the TFR and TDR. In these jurisdictions only, use 2420-750 for insurance and use 2420-000 for other costs to secure/maintain property.
d. Costs re Sale of Property (2500-000) includes advertising by the trustee, certain real estate closing costs, expenses for getting the property ready for sale (generally, one-time costs--as opposed to ongoing maintenance costs, which belong under 2420-000), and other costs related to the sale that are not covered by other UTCs. Note that there are separate UTCs for Realtor Fees and Expenses (3510-000 and 3520-000), Auctioneer Fees and Expenses (3610-000, 3620-000, 3630-000, and 3640-000), and post-petition real estate taxes paid through escrow (2820-000).
7) Other Chapter 7 Administrative Expenses (2990-000) is a catch-all for expenses not covered by the other UTCs. It has only one sub-code. Where required, use 2990-800 for Superpriority Administrative Expenses (ï½§ 364(c)(1) and ï½§ 507(b)) and 2990-000 for everything else that goes in the category
8) The UTCs for Income Taxes - IRS (2810-000) and Other State and Local Taxes (2820-000) cover post-petition chapter 7 administrative taxes (except for payroll taxes in chapter 7 operating cases - see above).
9) The UTC for UST Quarterly Fees paid during the chapter 7 case is 2950-000.
0) The UTC for adversary and other filing fees paid to the court is 2700-000. Do not use this UTC for unclaimed funds and claims under $5 that are turned over to the court. See General Overview for coding unclaimed funds and claims under $5.
Priority Claims: Prior Chapter Fees/Expenses - While most of these UTCs are self-explanatory and the previous commentary may apply, some need further elaboration:
1) These UTCs pertain only to prior chapter fees and expenses that are unpaid at the time of conversion to chapter 7. The trustee does not code deposits and payments that occurred during the pendency of the case in the prior chapter.
2) Under prior chapter legal fees and expenses, 6210-000 and 6220-000 are used for Attorney for Trustee/D-I-P Fees and Expenses (Other Firm). Some jurisdictions have specified that Attorney for D-I-P (Other Firm) be tracked separately from Attorney for Trustee (Other Firm). In these jurisdictions only, 6210-000 and 6220-000 will be used for Attorney for Trustee Fees and Expenses (Other Firm) and 6210-160 and 6220-170 will be used for Attorney for D-I-P Fees and Expenses (Other Firm).3) Some jurisdictions require a break-out of the costs associated with Chapter 11 Special Counsel and Chapter 11 Special Accountant. Accordingly, sub-codes have been created for these items.
4) Unless otherwise required in a local jurisdiction, Other Prior Chapter Professional Fees and Expenses are captured in two categories: 6700-000 for fees and 6710-000 for expenses. See the next page for the sub-code possibilities.
5) Some jurisdictions require a further breakdown of Other Prior Chapter Professional Fees and Other Prior Chapter Professional Expenses. These jurisdictions may require up to 22 specific sub-codes under each "primary" code. Sub-code 00 is used when a sub-code does not apply or is not required in the region. The possible sub-code categories are:
Accountant for Creditor's
Committee (Chapter 11)
Attorney for Creditor (Chapter 11)
Attorney for Creditor's Committee (Chapter 11)
Attorney for Debtor (Chapter 12 or 13) [Attorney for DIP is discussed above.]
Attorney for Disbursing Agent
Attorney for Receiver (Chapter 11)
Appraiser (Chapter 11)
Arbitrator (Chapter 11)
Collection Agent (Chapter 11)
Consultant (Chapter 11)
Disbursing Agent (Chapter 11)
Examiner (Chapter 11)
Field Representative/Adjuster (Chapter11)
Financial Consultant (Chapter 11)
Harvester (Chapter 11)
Management Company (Chapter 11)
Mediator (Chapter 11)
Personal Property Broker (Chapter 11)
Petroleum Landman (Chapter 11)
Private Investigator (Chapter 11)
Receiver (Chapter 11)
Surveyor (Chapter 11) 6) The UTCs for Prior Chapter Income Taxes - IRS (6810-000) and Prior Chapter Other State and Local Taxes (6820-000) cover post-petition taxes that remain unpaid at the time of conversion to chapter 7. Some jurisdictions have specified that chapter 12/13 taxes must be segregated from chapter 11 taxes. In that event, use sub-code 85 for Prior Chapter Income Taxes - IRS (Chapter 12/13), sub-code 86 for Prior Chapter State and Local Taxes (Chapter 12/13), and sub-code 00 for unpaid post-petition taxes stemming from chapter 11.
7) Under Prior Chapter Operating Expenses, there are separate UTCs for trade debt (6910-000); administrative rents (6920-000) such as storage fees and leases; and other operating expenses (6950-000). Some jurisdictions use sub-codes for chapter 12/13 operating expenses (6950-800), and administrative wages (6950-720) and the related payroll taxes (6950-730). All other Prior Chapter Other Operating Expenses go under 6950-000.8) One UTC is used for Other Prior Chapter Administrative Expenses (6990-000).
Priority Creditor Claims
1) These line items and UTCs are self-explanatory. No sub-codes are used.
2) Note that the employer portion of payroll taxes on Wage Claims (5300-000) is classified under Claims of Governmental Units (5800-000).
General Unsecured Claims
1) Timely filed general unsecured claims go under 7100-000, except for jurisdictions that require a further breakdown for payments to unsecured credit card holders (7100-900) and for payments of "R. 3002(c)(6)" Surplus Claims (7100-910).
2) Tardy general unsecured claims go under 7200-000, and fines and penalties are coded as 7300-000.
3) Claims that are equitably or consensually subordinated to all other creditors' claims go under 7400-000.
4) Interest on priority and general unsecured claims (in surplus cases) is classified under 7990-000.
1) Account Transfers are coded as 9999-000.
Changes to Current List of UTCs
1) Adding New Primary Codes, Sub-Codes, or Wildcards: Changes, additions, or deletions to the primary codes, sub-codes, and wildcards will be limited (e.g., semi-annually or annually) and coordinated through the Program's Office of Review and Oversight (ORO). For the first 90 days after implementation, ORO will collect suggested changes and present them to the Transaction Code Working Group (which includes vendor, trustee, and Program representatives). The approved changes will be published as "technical amendments." Thereafter, ORO will collect the suggestions and present them, along with the justification, to the Working Group no more than once or twice a year.
2) Activation of Sub-Codes Not Currently Used by Trustee: There are currently 66 possible sub-codes. Trustees will have pick-lists or pull-down menus from which to choose the primary code, sub-code and wildcard code. These pick-lists will be set up to contain only the UTCs that the trustees use. In general, this means that the pick-lists will contain all of the "primary" four-digit codes; none, one or more of the sub-codes; and at least three of the wildcard codes. If a United States Trustee later determines that an unused sub-code needs to be activated, the vendor and trustee will be notified to activate and use the sub-code in the future. In addition, a trustee may request the United States Trustee to activate a sub-code.
3) Changes to Vendor-Specific Codes: If additional codes are used within a specific vendor's software, they are not covered by these policies. However, these codes complement the UTC scheme and enable data to be accumulated according to this scheme. Any limitations on the ability to add, delete or change the vendor-specific codes are determined by the vendor.