Tag Archives: chapter

Association Answers: Are HOA board members protected from lawsuits?

Mike HunterQ: I am considering running for a seat on my HOA board. We are a community of about 80 homes. I am concerned about my indemnity as a board member. I tried to find a clause in my bylaws, but I can’t seem to locate wording that speaks directly to that. Our HOA property manager directed me to Chapter 47F of the North Carolina General Statutes (the NC Planned Community Act), but I still don’t see any language that would prevent a lawsuit from being directed toward me personally for action I take as a director of the HOA. Can you shed some light on this?

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Bankruptcy Court Rules that “Absent” Owner in Chapter 7 Must Pay, So Long as They Remain Owner

In a recent decision, our firm successfully defended an Association’s ability to collect post-petition assessments in a Chapter 7 bankruptcy case. The decision reaffirmed the 2005 amendments to the Bankruptcy Code. Following these Amendments, a debtor remains liable for post-petition assessments, so long as he or she holds “mere” legal title ownership.   

In In re Brown, Bankruptcy Judge Donald Steckroth held that a debtor remained liable for post-petition association assessments in a Chapter 7 proceeding. This liability remained, even after the unit was abandoned by the Trustee and the debtor did not live at the unit, so long as the debtor held legal title.  

The matter was brought before the Court on the debtor’s motion to compel the Association to release monies levied in a bank account, post-petition, after the bankruptcy case was closed. As background, the Association had received a state court judgment for only

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