Bankruptcy and Its Effect on Collection of Assessments
AN OVERVIEW
These materials concern themselves mainly with the effect of a bankruptcy on a homeowner association's ability to collect its assessments. Put another way, the object of these materials is to acquaint association managers and Board Members with the skills that will be necessary to determine whether a delinquent debt will still be collectible after a bankruptcy has been filed.
WHAT IS BANKRUPTCY?
Bankruptcy is a means by which a person (which can be an individual, partnership or corporation) seeks relief from debt. If a bankruptcy is successful, a person is no longer responsible under the law for the payment of debt. There are exceptions to that rule and the purpose of this article is to show you what they are and how they apply to homeowner association assessments.
