RULE 26 - TRUSTEESHIPS

 Rule 26.1 Application

 Applications for the appointment of a trustee shall include a complete and accurate statement, under oath, of:

 (a) the Debtor's name, address and marital status;

 (b) the name and address of the Debtor's employer(s);

 (c) the amount of his or her gross earnings for the previous thirty (30) days (including copies of all pay stubs for that period of time);

 (d) a statement indicating the name of the creditor from whom the fifteen-day written notice of proceeding to garnish earnings was received;

 (e) a written itemized list of current living expenses.

 Only residents of Miami County may make an application for appointment of trusteeship. Should a Debtor change address, the Debtor shall immediately notify the Court in writing of the new address. All filing fees must be paid at the time of the filing of the initial application. Upon the filing of an application, the Clerk shall immediately become the trustee without formal order of the Court. Objections of interested parties to the application shall be placed in writing and filed with the Court and only then will a hearing be set by the Court.

 At the time the application is filed, the attorney for the Debtor or the Debtor shall deliver or mail to the Clerk two (2) copies of a notice of the appointment for each creditor listed in the application together with a stamped envelope properly addressed to each creditor. The attorney for the Debtor or the Debtor shall deposit such notices in the mail within twenty-four (24) hours and the Clerk shall indicate on the docket that such notices were mailed to the creditors listed. It shall be the responsibility of the Debtor or his attorney to mail notices to all creditors. If the Debtor discovers that he or she has inadvertently omitted a creditor from the list included in the original application, the Debtor shall immediately submit a statement to the Trustee/Clerk of Courts indicating the name, address, account numbers and amount due to the creditor and an explanation of why the creditor was omitted. It is within the discretion of the Trustee Clerk to allow the addition of any more creditors. Additional creditors may be listed in the trusteeship only upon application and the service of a notice to each additional creditor as heretofore provided. If such application is made by a creditor, a similar notice must be given to the debtor, unless the creditor has obtained a judgment in a court of record.

 Each notice shall contain the name of the applicant, the sum applicant claims to owing, along with account numbers, and names and address of each creditor. No debtor for fifty dollars ($50.00) or less shall be included in the trusteeship.

 Rule 26.2 Distribution

 The Trustee/Clerk shall make no distribution payment to anyone except a creditor or any attorney for a creditor.

 The Clerk of Courts, or designee, shall supervise payments of debtors and distribute funds in each case. Payments shall begin once the court has at least five hundred dollars ($500.00) on deposit by the debtor, or with six (6) months, whichever comes first. Upon distribution to the creditors, a fee shall be assessed in the sum of five (5%) percent of the total amount disbursed to the creditors at the time of the disbursement. After the first disbursement, there shall be assessed an additional charge of Fifteen ($15.00) Dollars for the addition of each new creditor into the trusteeship. Where a debtor pays directly, the Clerk shall require the Debtor to produce payroll stubs or similar records and the Clerk may refuse to accept payments or installments thereof, which do not equal the amount required by law. In the event that payments are not made for thirty (30) days, the trusteeship shall be dismissed and the proceeds distributed.

 The Clerk may not accept payments into a trusteeship where the debtor pays direct, unless the tender of the payment is made by the Debtor, his agent or attorney, within four (4) days after the receipt of the personal earnings by the Debtor. This requirement can be waived only by a Judge or Magistrate of this Court.

 Rule 26.3 Dismissal/Reinstatement

 The dismissal of a trusteeship by rule of Court or upon motion of counsel for one of the creditors listed therein shall make the Debtor filing said trusteeship ineligible for reinstatement or refiling of the application for another trusteeship for a period of six (6) months from the date of the dismissal of the previous trusteeship.

 If the Debtor fails to make payments into the trusteeship as required, written notice of the Court's intention to dismiss will be sent. If Debtor does not respond within one week from date of notice, the trusteeship will be terminated automatically, and the Debtor may not re-file for a period of six (6) months.

 

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