Over $20,000 Collected for Association Through Chapter 7 Bankruptcy

A unit owner was discharged from a condominium’s association’s monthly fees in a Chapter 7 Bankruptcy, meaning the owner was no longer personally liable for the amount due at the time of bankruptcy filing. The Chapter 7 Trustee subsequently discovered, however, that the owner had recently received an inheritance after the passing of a relative. The bankruptcy case was reopened and Kaman & Cusimano filed a Proof of Claim for the amount due to the Association at the time of bankruptcy filing, and subsequently received payment of over $20,000 to the Association, approximately 100% of what the owner owed.  Even when an owner files Bankruptcy, it is important that the association be aggressive and assert its interest in the case to maximize the possibility of recovering delinquent funds.

Categories

Three bars icon gold

Recent blog Posts

Three bars icon gold

Did Fannie Mae Just Update its Condominium Lending Guidelines Again?

Maintaining mortgage eligibility is one of the most important aspects of protecting property values. If your condominium ...
Read More →

Are Reverse Mortgages a Hidden Risk for Your Association?

Reverse mortgages allow homeowners aged 62 and older to convert home equity into cash without ...
Read More →

What is a reasonable late fee for delinquent community association assessments?

Community associations depend upon the timely payment of assessments to maintain operations and protect property ...
Read More →

Owner to Owner Dispute – Lessons in Property Transactions

Owner to Owner Dispute – Over a Driveway Easement and Boat Slips:  A recent case perfectly illustrated the importance ...
Read More →