Strip Tease: A Debtor Cannot “Strip Off” or “Cram-Down” a Condominium Lien as Part of a Chapter 13 Bankruptcy Action

The District Court recently delivered a rare win for condominium associations throughout New Jersey dealing with bankruptcy actions filed by their residents. The Court reversed a 2015 decision that allowed debtors filing Chapter 13 bankruptcy petitions to “strip off” or “cram down” an association’s lien, which in most cases resulted in that the association only receiving six (6) months of assessments and having to write off as bad debt all of the remaining unpaid amounts.    Read the article………