New Jersey Bankruptcy Court Finds Lien Held by Homeowners’ Association Is Subject to Modification

The United States Bankruptcy Court for the District of New Jersey recently overruled a creditor’s objection to the debtors’ proposed chapter 13 plan, rejecting the association’s argument that its claim is secured by a consensual lien and may not be modified pursuant to 11 U.S.C. 1322(b)(2). Specifically, the Court found that a lien held by a New Jersey condominium or homeowners’ association can be either a statutory lien (subject to modification) or a consensual lien (not subject to modification) depending upon the circumstances presented. In re Keise, 564 B.R. 255 (Bankr. D.N.J. 2017). The matter was before the Court on a confirmation hearing on the chapter 13 plan filed by the debtors.    Read the article…………..


Related Articles

Rights & Responsibilities for Better Communities

More than a destination at the end of the day, a community is a place people want to call home

Bill on Governor Brown’s desk would allow Californians to dry clothes on backyard clotheslines overriding HOA rules

Backyard clotheslines and drying racks are unsightly, according to many home owner associations. But a bill awaiting Governor Jerry Brown’s

Recovering Condominium and Homeowners Association Fees Due Prior to Sheriff’s Sale

Under Pennsylvania statute, when real estate subject to homeowner’s association assessments or condominium association assessments is sold at sheriff’s sale,