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We have become aware that a recent law in New York shortened the statute of limitations to collect consumer debts. Does this affect our library’s ability to enforce and collect library fines?
We are a school district public library, and a governmental entity, considering crafting a policy relating to debts discharged in bankruptcy, if the library is named as a creditor.
Are replacement costs for library materials exempt from or subject to discharge of debt? Overdue fines?
Fees levied in an attempt to recover materials (i.e. collection agency fees)? (We do not submit overdue fines to collection agencies, only the replacement costs of materials, in an attempt to recover them)
Are we allowed to impose restrictions on borrowers whose debt has been discharged, if they have not returned materials owned by the library? For example, can we deny loans to a borrower until they return library materials, or pay for them, if the debt has been discharged; or can we limit the number of items loaned for a period of time?
The following is an example of a such a policy. Is it problematic?
The Library will comply with Discharge of Debtor decrees by bankruptcy courts. Once the library is notified that a bankruptcy has been filed, collection activity is suspended on the customer’s account and on the accounts of any minor children (to the extent that the charges existed prior to the date of the bankruptcy filing) until the library is notified of the outcome.
Cardholders who have:
Filed for bankruptcy,
Named The Library as a creditor,
Received a discharge, and
Presented the appropriate documents to the library
Shall have outstanding balances for fines, fees, and collection agency charges removed from their accounts. However, all Library materials borrowed on any account covered by the bankruptcy decision must be returned in order to have a Library card in good standing.
Only charges owed to The Library as of the date of the decree will be waived. Fines and fees incurred after the period of time covered by the bankruptcy proceedings are not covered by the discharge document and will remain on the borrower’s account and those of any minor children.