Legal News

FJD Collection Efforts Showing Results

By Brian Harris

By Amaris Elliott-Engel
Of the Legal Staff
 
After two months of allowing former defendants to set up plans to pay tardy court fees, fines and costs without penalty, the First Judicial District is reporting that it is collecting 4 percent of that outstanding debt, exceeding debt industry expectations.

Experts were projecting that the court system would be able to only collect 1 or 2 percent of the outstanding debt.

Now that the penalty-free period for setting up payment plans is over this week, other former defendants who still owe the FJD will have their cases turned over to a collection law firm, said David Wasson III, the FJD chief deputy court administrator, during a press conference today. The amount of remittances received in January and February doubled, Wasson said.

The FJD also announced today that 622 city of Philadelphia employees owe a total of $1 million in tardy court fees, fines and costs. The FJD is working with the City Controller's Office to identify those employees to give them the opportunity to set up payment plans for the delinquent court fees, fines and costs or to issue orders attaching their wages.

If employees do not set up payment plans, Municipal Court President Judge Marsha Neifield said she would issue orders to attach their wages.

Neifield said it not the responsibility of the courts to remedy Philadelphia's ongoing debt and fiscal challenges, but the FJD would do its part to try to collect money owed by "622 Philadelphia city employees who should know better."

Wasson said the largest amount owed by a city employee is $150,000, but a more typical debt is under $1,000.

Up to 20 percent of a former defendant's wages can be attached, Wasson said. But on a sliding scale based on salaries and that most people owe less than $1,000, most people will pay $35 a month, Wasson said. Controller Alan Butkovitz said that the sliding scale is based on federal law thresholds based on poverty and income levels. That sliding scale also was used when the Controller's Office initiated a collection effort in 2010 of back taxes owed by city employees, Butkovitz said.

Wasson said the court gives up to 20 years for people to pay back debt.

Court officials estimate that a total of $1.5 billion is owed to the court with some of that debt dating back decades.

Full post as published by The Legal Intelligencer Blog on March 01, 2011 (boomark / email).