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Mason Municipal Court Front View

Trusteeships

             This rule shall apply whenever a person applies to the Court for an appointment of a Trustee pursuant ORC §232q.70

Duties of Applicant-Debtor, Creditor and Court

(A)   An applicant-debtor shall complete an application under oath containing names of all secured and unsecured creditors with liquidated claims, creditor's or collector's complete mailing addresses, account numbers, and amount due. Further, the debtor shall list his/her employer, the employer's address and telephone number, present salary, amount per pay period and the pay period, statement of dependents and if there was a previous trusteeship, the reasons for termination.

(B)   The applicant-debtor shall deposit the appropriate fee for processing, provide the clerk pay stubs from the most recent 30 days of work and a copy of the 15-day notice of garnishment ORC §2716.02. The application and appointment of Trustee are approved upon the filing of the journal entry.

(C)   The application should be filed within 15 days of the service of the demand on the debtor. The debtor must be a resident of the City of Mason or Deerfield Township or a non-Ohio resident earning wages in the City of Mason or Deerfield Township. The trusteeship only prevents garnishment of personal earnings.

(D)   No debt for less than $50.00 shall be included in the trusteeship. Once the debts are reduced to the amount of $50.00, the Trustee shall pay that debt in full on the next distribution.

(E)    The Trusteeship Clerk shall notify each creditor listed on the application, by certified mail that an application for the appointment of a Trustee has been filed and require verification of all information regarding the account provided by the debtor.

(F)    Any creditor who holds a chattel mortgage or any other lien or encumbrance may elect to participate by filing the election and agreement with the debtor, or with the court. If the secured creditor does not wish to participate, an objection shall be filed: otherwise failure to answer within ten days of the notice shall be held by the court as an election to participate. Secured creditors will be estopped from asserting their liens as long as the debtor maintains his agreement. Unsecured creditors must answer or they will not participate in the distribution of funds. Creditors will be prohibited from garnishing personal earnings once the application for trusteeship is approved by the Judge. The trusteeship does not prevent collection against ocher non-exempt property.

(G)   The debtor shall pay to the Trustee the lesser of:

a.       personal earnings less exemptions per law, or

b.      25% of personal earnings.

(H)   Withheld amounts such as union dues, credit union charges, insurance, or child support shall not be included in computation of personal earnings. Payments to the Trustee shall be made on the same basis 25 the debtor is paid.

(I)      Payments shall be made by cash, certified check or money order on or before date due and not less than the amount specified by the court. Direct payments to creditors will not be considered as an excuse. Reductions in pay, loss or change in employment, or change in address must be reported immediately in writing to the Trustee. In the event, a payment is unable to be made; a motion and affidavit shall be filed with the court on or before payment is due. If the debtor is unemployed, a minimum payment of $10.00 per week shall be paid. The debtor shall be required, to provide verification of personal earnings every six (6) months. Failure to do so will result in termination of trusteeship.

(J)     Any trusteeship that has payments past due for a period of fifteen days will be notified of pending dismissal. After sixty (60) days from a missed payment, the trusteeship will be terminated without notice. The debtor may not re-open or file for a new trusteeship within six (6) months unless the debtor can show that the failure to pay was not due to willful negligence.

(K)  Funds shall be distributed to creditors after a sum of $750.00 has been accumulated or six (6) months has passed, whichever occurs first. A fee of two (2) percent of the distribution will be assessed to cover the costs. The debtor shall receive notice of the amount distributed, and new balances due the creditors.

(L)    If the debtor fails, through mistake or otherwise, to list a creditor, upon motion to the court, the creditor may be added to the list. The motion shall be in writing with notice to the non-moving party. Any creditor, who becomes a c-editor after the appointment of the Trustee, shall share in the distribution made by the Trustee after the next ensuing distribution. No debts incurred after the appointment shall be added and may result in termination of the trusteeship.

(M) An attorney at law representing a debtor for the appointment of a Trustee shall be permitted to include his/her claim for services. The first $150.00 of the fee shall be given priority in payment over all creditors. The balance of fee shall be paid as all other creditors in subsequent distributions.

(N)  If any interest was included in the liquidated claim, said sums shall be collected and distributed unless otherwise agreed between the creditor and debtor. Penalties shall not be included or collected.

(O)  Married couples may file a joint application for appointment of a Trustee and each must provide wage stubs and make payments into the trusteeship. However, any subsequent divorce will terminate the trusteeship. The termination of the trusteeship shall not prevent an approval of a new trusteeship within the six (6) months of termination.

 

 

 

 

 

 

 

 

 

   
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