I am filing Chapter 7 in Nov. I am two months delinquent in the association dues. The by-laws state that " . . .the assessment shall bear interest form the date of deliquency at the maximum lawful rate of interest then in effect, and the association may bring action at law against the condominium unit as to which the assessment is made, and it's owner. In such action the association shall be entitled to recover interest, costs and reasonable attorneys' fees which will be added to the amount of the assessments not withstanding any claimed or actual non-use of the common areas or abandonment of his unit."
The office condo is included in the bankruptcy. Will I be required to pay these dues that are delinquent at some point in time?
A Chapter 7 can only eliminate debt made before the bankruptcy was filed. You can't expect your Chapter 7 to eliminate any debt after you filed & you will be legally responsible for paying the ongoing condo fees after you filed.
If you intend to retain the condo, you should be aware that you might still have to pay all past association dues in spite of the bankruptcy. In many instances, the association will have filed a lien or may have a statutory claim as a secured creditor, requiring you to make good on this debt to keep the property.
If you intend to surrender the condo, the association may or may not elect to pursue collection efforts against you.
Hope this perspective helps!
These issues require a through analysis - because pre-petition debts may be dischargeable and desirable. However, debts incurred post-petition (after filing) are generally not dischargable. And, if you intend to keep the condo, you may have to pay the past due amount even if the debt is discharged. Again, how this all works in your case requires an attorney to look at your particular situation.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
Chapter 7 Bankruptcy Attorney
Generally, any association dues that are accrued prior to filing your bankruptcy will be dischargeable in a chapter 7 bankruptcy. However, any Association dues that accrue after the filing date of your bankruptcy will be non dischargeable.
If you need additional information, you should contact a bankruptcy attorney in your area.