Bankruptcy 101: Chapter 7 vs. Chapter 13

We have been asked on numerous occasions recently to provide guidance to our community association clients about the effects that bankruptcy has on their collections cases. The most common forms of bankruptcy by owners in the community association context are filed pursuant to either Chapter 7 or Chapter 13 of the United States Bankruptcy Code. Because of the confusion surrounding bankruptcy, many boards see bankruptcy as a negative for their community. Though the filing of bankruptcy certainly can have negative consequences, bankruptcies can actually be a good way for owners to restructure their debts and do not necessarily discharge all of the obligations owed to the community. That is, the bankruptcy may actually result in the association receiving more of the funds owed than they otherwise would have.    Read the article…………….

Editor

Recent Posts

How to Choose a Property Management Company

No two communities are identical; each community has various factors which influence what type of…

9 hours ago

Untenable Tenants! How To Address Problem Renters In Your Condominium (MI)

Tenants in condominium communities are often viewed as challenging, since they may not be familiar…

9 hours ago

HOA Homefront: Is it our manager or is it us?

Many associations struggle with a poor manager relationship, resulting in frustration for both sides. However,…

11 hours ago

Dubai homeowner associations can use emergency funds to take on repair works from April 16 rains

Homeowner associations in Dubai have started to receive approvals from RERA to use their emergency/reserve…

11 hours ago

What you can expect to pay for NYC condo or co-op insurance

New York City has never been particularly cheap, and annual insurance costs make living in…

11 hours ago