Can Community Associations Collect Pre-Petition Assessments in a Chapter 13 Bankruptcy?
A recent Ninth Circuit Court of Appeals case casts doubt on whether a community association can collect pre-petition assessments in a chapter 13 bankruptcy.
"The Ninth Circuit Court of Appeals recently ruled that an individual's pre-petition debt for assessments may be dischargeable upon successful completion of a Chapter 13 Plan. While this ruling is contrary to rulings from similar cases from around the country, it creates confusion for community associations regarding what amount(s) can be collected when a delinquent owner files for Chapter 13 bankruptcy protection."