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 organization.

• 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.

Set-Up Requirements

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 notice transmissions.

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)