Hawaii 2009: I filed Chapter 11 bankruptcy. I wanted to keep two pieces of real estate and apply for modifications. The trustee required me to deposit all monies earned from rent into a bankruptcy account and provide monthly reports to trustee. When it was converted to a Capter 7 7 months later the trustee told me I was responsible for all of the expenses but I cannot rent the properties. When I asked my attorney why she said "because the trustee said so" . The association foreclosed on the properties 4 months later. I explained that I couldn't afford the dues since the Trustee said I cannot rent the properties. Now they are doing a judicial foreclosure. The banks are sending notifications to modify the loans, but the homeowners association says I don't own the property .
Do you have a question? Obviously, Chapter 11 cases are complicated and you have a lawyer who knows all about your case.
Bankruptcy Trustees have a lot of discretion about how to manage money obtained while administering property, but collecting rent and not paying for any of the services tied to property sounds pretty typical to me. Hope this perspective helps!
The HOA apparently obtained relief from the stay to foreclose, and the Trustee appears to have been aware of it and took no action to oppose. Apparently there was no equity in the properties, and you were unable to service the debt while in Chapter 11. I have idea how you intended to "keep" these properties, but you should ask you lawyer what can be done at this point, if anything.