RAVEN RUN — The Municipal Authority of the Borough of Shenandoah is considering a law firm that specializes in collecting delinquent accounts.
During Tuesday’s meeting, the MABS board listened to a presentation from attorneys Kevin H. Buraks and Jason J. Leininger of Portnoff Law Associates LTD., Norristown, about the firm and the service it can provide.
According to the firm’s website, Buraks chairs Portnoff’s Litigation and Bankruptcy Departments, and Leininger is the firm’s director of Client Services and chair of the Client Management Department.
“We’re here tonight to discuss how we can help maximize the collection of the authority’s delinquent water bills,” Buraks said. “We’re a Pennsylvania law firm, and our entire legal practice revolves around the collection of delinquent municipal obligations and real-estate taxes. That’s all we do, and we’ve been doing it in Pennsylvania for over 25 years and have over 110 clients in 23 counties, including 20 authorities.”
Buraks said that Portnoff can provide a comprehensive service beyond what a collection agency can.
“By hiring us, you’re not just getting someone who can collect your water bills,” he said. “You’ll have access to our entire legal team to help you with any collection issues that may arise. The fact that we’re a law firm also provides additional security for the authority because we’re held to higher ethical standards than just a collection company, and we’re also subject to the rules of professional conduct.”
Buraks said the firm uses the Municipal Claims and Tax Liens Act because it provides the most benefits to clients.
“The biggest benefit that you would see by proceeding under that act is that all costs of collection, including our firm’s attorney fees, can get passed through to the delinquent property owner,” Buraks said. “So at the end of the day you can collect 100 percent of your money without spending money for collection costs.”
Buraks told the board the authority would begin by providing the up-front cost of $40 plus postage costs for each initial notice that has to be sent to legally provide notice that the fees will be shifted under the MCTLA.
Leininger said Portnoff offers payment plans and a hardship application.
“So if the owner/occupant living at the property has some type of financial hardship, they can apply for an extended payment plan using the hardship application,” Leininger said.
MABS Chairwoman Donna Gawrylik asked Leininger what is done if the property owner is deceased. He replied that Portnoff would proceed against the estate and heirs.
Authority solicitor Joseph Nahas asked what would happen if nothing is collected on a delinquent account where Portnoff has incurred expenses.
“What happens if you end up with a goose egg whereby, after a sheriff’s sale, you end up with zero? Portnoff will have some money involved,” Nahas said. “Does Portnoff then look to the authority to collect that (legal costs)?”
“There is some risk,” Buraks replied. “The only time we would ever come back to you is if you decided to tell us to stop collecting on an account for a non-economic reason. If you told us to stop collecting, we would certainly want our money back as we invested it. Sometimes we lose money, but overall we ended up making money and the process works. That’s why we have so many clients.”
Portnoff’s clients in Schuylkill County are Gordon Borough, Rush Township, the school districts of Panther Valley, Saint Clair Area, Shenandoah Valley and Tamaqua Area and the Schuylkill County Municipal Authority.
After the presentation, Gawrylik thanked the two attorneys for the information. She said the board will review the information provided by Portnoff and get back to them on its decision.