In Part 4 of this series, I discussed how the Automatic Stay stops collection efforts against Unit Owners. In this entry, I want to go through a typical timeline for a Chapter 13 Bankruptcy case — mostly from the Association’s perspective. I do not intend this to be an exact breakdown of the Bankruptcy Court’s filing deadlines and procedures. Rather, this is more of a general, “what to expect” timeline.
Before I do so, remember that when a Unit Owner files for Bankruptcy, they usually have debts that they cannot pay without that help. In our situation, it usually means that they are far behind on their mortgage and/or assessments. Very often, a Unit Owner files for Bankruptcy to stop a foreclosure by the Bank or the Association. When a Unit Owner files for Bankruptcy, they often owe thousands or tens of thousands of dollars to the Association and hundreds of thousands of dollars to the mortgage company.
Continue Reading Condominiums, Homeowners’ Associations and Bankruptcy: The Lifecycle of a Chapter 13 Bankruptcy