Unlucky Seven? What the Recent Upsurge of Chapter 7 Bankruptcy Filings Means for Community Association Collections
January 2, 2003's Denver Post reported that 2002 Colorado bankruptcy filings totaled 21,250, breaking 1997's record of 19,075. Chapter 7 filings were up 13% over 2001, according to the Post. This trend is likely to continue through most if not all of 2003.
Many people think "Chapter 7" means all debt must be written off because the debtor has "thrown in the towel." But even though a homeowner files a Chapter 7 bankruptcy petition, your association may still be able to collect assessments.
