Login | November 30, 2024
A look at Youngstown Muni Court trusteeship program
SHERRY KARABIN
Legal News Reporter
Published: November 30, 2017
It’s been about two years since Youngstown resident Joe received notice that his wages would be garnished to pay an outstanding debt.
“I had co-signed for a car for my ex-girlfriend and she never kept up the payments, which I did not even know until I got the notice,” said Joe. “I was looking for a way to pay off the debt in a timely manner that did not impact my ability to maintain my lifestyle.”
He decided on a trusteeship, a debt repayment tool that allows the debtor to avoid garnishment while paying back what’s owed over a specified period of time.
The Youngstown Trusteeship Program is administered by the Clerk of Court office at the municipal court and was an established program when the current clerk Sarah Brown-Clark assumed the position.
Deputy Clerk Valerie Revere said the only requirement is that the applicants have at least one judgment against them in which a 15-day demand for payment has been issued.
“The program can help a person with one outstanding bill or many outstanding bills,” said Revere. “We have applicants with everything from outstanding medical bills to Payday loans.
“The only type of debt that cannot be resolved through a trusteeship is IRS debt.”
Those seeking a trusteeship can file in the municipal court where they live or work, even if they are not residents of the state.
“On the application, the debtor lists all the creditors, amounts owed and account numbers,” said Revere. “They also must include a copy of their pay stubs and pay a $58 filing fee.”
The trustee deputy clerk verifies all the information on the application.
Revere said the applicant’s bills are consolidated into one monthly payment, with the amount to be paid calculated by Youngstown Municipal Court Magistrate Anthony Sertick Jr.
“Once the application is filed with the clerk’s office and all of the information has been validated, a hearing date is set on the motion for trusteeship,” said Sertick. “There are certain statutory requirements that determine whether the motion is granted.
“To determine the payment, I will look at the debts and then calculate disposable income based on 25 percent of the applicant’s net earnings,” he said. “Each creditor will get a portion of the 25 percent, so everyone will get paid as opposed to one creditor getting everything and interest accruing on the remaining debts, which is typically what happens when garnishment is filed by one of the creditors.”
Revere said once the trusteeship is approved, she contacts the employer who deducts the money from the applicant’s paycheck and sends it to the court directly.
“Once the trusteeship is approved, no creditors can be added unless the applicant mistakenly failed to add a creditor on the application,” said Revere. “The applicant cannot add any new debt that was accrued after the trusteeship was approved.
“If the applicant becomes unemployed the trusteeship can be held at the court’s discretion until new employment is obtained.”
“Our program offers residents who are sincerely committed to repaying their debt a chance to do so in good faith without an invasive garnishment or a complete loss of one’s credit rating,” said Youngstown Municipal Clerk of Court Sarah Brown-Clark. “The credit bureau will receive a report from the creditor that a payment has been made every 30 days, so it is possible to improve one’s credit rating while in the trusteeship program.”
Brown-Clark said they currently have nine people in the program, which represents a drastic drop from 10 years ago when there were 300.
Brown-Clark said she believes that eligible people may not be aware of the program or that because of economic circumstances more people are looking to discharge their debt entirely and are thus opting for bankruptcy.
In Joe’s case, he said the trusteeship is working out.
“It was a relatively smooth process,” said Joe. “It took less than two weeks and since the money is deducted before I even see it, I do not have to deal with the actual payments.
“I should be done in February or March of 2018,” said Joe. “In the meantime, I am working toward improving my credit rating.”