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Can association fees be filed under bankruptcy?

Updated: 8/19/2019
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13y ago

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Your bankruptcy attorney is the person who can give you the best advise for this answer.

Your dilemma will be this: if you choose to continue living in your unit, your neighbors -- who have paid your bills -- may not be as 'community-oriented' toward you if you charge off the assessments that you owe in a bankruptcy proceeding.

The above is obviously unlikely, as few if any neighbors will know.

However, your problem is two fold really: All debts must be included in bankruptcy (no picking and choosing). Most all assoc. / condo fees are written that they become a lien against the property, much like a mortgage. It is a secured debt. The BK court handles it as such. So the assoc has the right to foreclose and use the $ from the sale to get paid with any excess going back to the BK court to pay other debts No question the court would (has to) force the sale of the secured asset (the property) to pay this debt or it is bein unfair to other creditors. No question the asssoc has to do all it can to be paid, or it is being unfair to other assoc members. Normally, as the mortage is bigger and has more to lose, it is the one that ends up foreclosing.

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