How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 37972
Experience:  Attorney and Real Estate broker -- Retired (mostly)
10097515
Type Your Real Estate Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

my bank forclosed on my condo. condo association wants to

This answer was rated:

my bank forclosed on my condo. condo association wants to collect my delinquent monthly
Hello,

How much do you owe (approximately)?
Customer: replied 3 years ago.


20,000.00 dollars

Thanks.

Under the U.S. Bankruptcy Code Section 523(a)(16), and the case law precedent of In re Hall, 454 BR 230 (USDC ND GA 2/18/2011), association fees cannot be discharged in Chapter 7. In Chapter 13, a debtor may be able to avoid association fees incurred after filing the bankruptcy petition, once the debtor has lost all interest in the property, because he/she no longer resides in or has any legal title in and to the property subject to the fees.

Given the interaction of the above-described laws, the only legal recourse that you could use to avoid some of the debt would be to file Chapter 13, use the bankruptcy law to stay enforcement of as much of the debt as possible, spread the payments over the subsequent 5 years, and avoid any additional interest or attorney's fees which would have otherwise accrued on the debt while you are paying it off.

The only other option, assuming you are simply stone broke is to tell the association's attorneys that you have no assets, so they can garnish your wages up to 25% of your after tax income, but that's all they can get, because beyond that, you're judgment proof.

Personally I think the Chapter 13 has at least some benefits, but a Chapter 13 will probably cost you nearly $5,000 in fees, so it may not be worth the extra dough to get the association off your back, unless you have a lot of other debts that you need to rid yourself of.

That's about all there is for this issue. I really wish there were more, but this is one of those no-win scenarios, sort of like child support. You just cannot get rid of the debt, once you incur it.

Please let me know if I can be of further assistance.
socrateaser and 2 other Real Estate Law Specialists are ready to help you

Related Real Estate Law Questions