Schneider, 54, was recently convicted of a misdemeanor charge stemming from the use of town credit card for personal use between 2009-2011.
She was originally charged with a felony, but a judge ruled to drop the charges at a sentencing/ guilty plea hearing on Nov. 1. Schneider had made full restitution prior to her December 2012 arrest, which may have contributed to her receiving the lesser sentence.
Following the hearing on Nov.1, a judge sent a sentencing order to a committee to review if she would remain on the Sunman Town Board. According to the source, Indiana Code dictates that she is forced to resign.
Schneider has held the position for 23 years.
WRBI left a phone message with officials in Ripley County Thursday morning and will have updates when more information is available.