Tag Archives: debtor

Fair Debt Collection

Since assessments are fees for maintenance and use of utilities and not consumer debt, many association board members wonder if their communities are subject to the Fair Debt Collection Practices Act (FDCPA).  Some may be surprised to learn most state and federal courts consider assessment to be “debts” according to this definition: Read more

Fair Debt Collection

Since assessments are fees for maintenance and use of utilities and not consumer debt, many association board members wonder if their communities are subject to the Fair Debt Collection Practices Act (FDCPA).  Some may be surprised to learn most state and federal courts consider assessments to be "debts" according to this definition:  A debt...

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Associations Can Collect Delinquent Assessments Accruing After a Homeowner Files Bankruptcy

After a debtor files a bankruptcy case, the court enters a discharge order, which forever discharges and makes unenforceable many debts owed by the debtor.  However, the bankruptcy code exempts certain debts from this discharge. Among these are debts “for a fee or assessment that becomes due and payable after the order for relief to a…

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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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