Benefits of EDI
Participation in the free Electronic Bankruptcy Noticing program can offer many
benefits to creditors. EDI technology is operated by the Bankruptcy Noticing Center
(BNC) to provide enhanced service for creditors. Bankruptcy noticing data can now be
formatted in Electronic Data Interchange (EDI) and transmitted to an electronic
mailbox in lieu of paper notices. EDI bankruptcy notices are delivered days faster
than the U.S. Mail. In addition, the EDI information can be processed by computer,
providing the capability for processing bankruptcy noticing information at a fraction
of the cost of manual methods. Electronic notices can be routed to a single electronic
mailbox, eliminating the need to route paper notices to the proper people in an
Creditors that receive thousands of bankruptcy notices can replace paper with
a computer-to-computer process
EDI bankruptcy notices are delivered days faster than the U.S. mail.
Creditors can reduce their processing expenses and improve data accuracy by
replacing manual processes with automated procedures
How Does EDI Work?
The BNC will transmit bankruptcy notices to creditors using Electronic Data
Interchange (EDI) formatted data. In doing so, it provides only the variable
information contained in the notice rather than the entire notice text, e.g. form
identification codes, debtor names, 341 meeting locations. Vendor supplied EDI
software products "read" the variable notice information in the EDI data fields. The
use of EDI will benefit those creditors that receive thousands of bankruptcy notices
by replacing paper with a computer-to-computer process.
Creditors not already using EDI for other applications, such as invoicing, must
purchase and install EDI software and obtain an electronic mailbox account for EDI
The EDI Gateway
The Defense Automatic Addressing System Center (DAASC), operated by the Defense
Logistics Agency of the Department of Defense, serves as the central collection point,
or gateway, for transmission of EDI documents - both within DoD and to private sector
value-added networks (VANs). DAASC has entered into a Memorandum of Agreement with the
AOUSC to provide free EDI gateway and mailbox services for the judiciary and its
electronic noticing trading partners (creditors).
Requesting EDI Service
Bankruptcy Rule 9036, which authorizes electronic noticing, requires recipients to
request electronic noticing services in writing. Creditors wishing to take advantage
of electronic noticing must complete and the online sign a Noticing Partner Agreement
with the court, or its designee the BNC, to ensure understanding of the EDI process
and roles of the parties, and to meet legal requirements.
EDI Noticing Process
(See Diagram Below)
- Court generates notice request through court's case management system
(paper or imaged notices cannot be converted to EDI format).
- BNC groups notices into EDI and US Mail recipients per Trading Partner
- DAASC receives EDI notices and places them in trading partner/creditor
mailbox. If the trading partner/creditor resides on another VAN, message
is routed to VAN.