Automated Trustee Payment Processing System

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Solution Overview

Problem

The conventional processing of payments from Chapter 13 Trustees to creditors is time-consuming and error-prone due to the need for cross-referencing numerous entries, which increases the workload and reduces accuracy in identifying the correct loan and debtor data.

Innovation Solution

An automated trustee payments system that automates the logging, tracking, and processing of remittance checks by retrieving and parsing check voucher data, cross-referencing remittance items with internal loan systems, and applying funds to the appropriate loan account segments, reducing the need for manual inquiries and calculations.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If manual cross-referencing of remittance checks is performed, then payment accuracy can be maintained, but processing time and workload increase significantly

Engineering Contradiction:

Improvepayment accuracyVSAvoidprocessing time

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The system enables automated self-processing of remittance checks by retrieving check data, parsing voucher information, cross-referencing with loan systems, and applying payments automatically without requiring manual user intervention for each check

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces the manual mechanical process of cross-referencing checks with an automated electronic system that interfaces with the Trustee's data repository and the creditor's loan system to automatically match and apply payments

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Reliability

If manual determination of payment application is performed, then proper fund allocation can be ensured, but error rate increases due to ambiguous identifiers

Engineering Contradiction:

Improvefund allocation reliabilityVSAvoidpayment application accuracy

Core Design Contradiction:

ReliabilityVSManufacturing precision

Solution Approach 1:

The system automatically determines the proper application of funds by self-analyzing remittance item data, voucher descriptions, and Trustee case information to calculate and apply payments to the correct loan accounts without manual intervention

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent introduces an automated payment processing system as an intermediary between the Trustee's data repository and the creditor's loan system, which resolves ambiguous identifiers by cross-referencing multiple data sources and applying business rules to determine correct payment allocation

Inventive Principle:

Principle #24Intermediary (Mediator)

3Productivity

If automated processing is implemented, then productivity increases, but system complexity increases

Engineering Contradiction:

Improveremittance processing productivityVSAvoidsystem complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The automated payment processing system performs multiple functions including data retrieval, parsing, cross-referencing, exception handling, and payment application through a single integrated platform that interfaces with both the Trustee's data repository and the creditor's loan system

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS11263600B2Automated trustee payments system

Publication Date: 2022.03.01 4 S TECH

AI summary

The present automated trustee payments system implements a series of automated processes which significantly reduce, and in many cases, eliminate a creditor user's work that is required to accurately and timely process incoming Chapter 13 Trustee remittances. The automated trustee payments system also effects application of the funds to the proper bankrupt debtor accounts and accounts for the funds against the proper creditor's loan account segments (e.g., the bankruptcy estate pre-petition indebtedness or the post-petition ongoing payments).