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socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39144
Experience:  Attorney and Real Estate broker -- Retired (mostly)
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my bank forclosed on my condo. condo association wants to

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

How much do you owe (approximately)?
Customer: replied 4 years ago.

20,000.00 dollars


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.
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