Bankruptcy

Started by RichardP13 • 4 replies • 1582 views

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RichardP13 (California)
Posts: 3,868

Posted:

This was just received from the CAI Community Association Law Reporter:

Seems the Middle District and Southern District of Florida need to communicate with one another on BK-13 rulings.

Bankruptcy Discharge Does Not Extinguish Owner's Personal Liability for Assessments
In re: Montalvo, Case No. 6:10-bk-08338-KSJ, Chapter 13 (Bankr. M.D. Fla. Feb. 25, 2016)
Assessments: The U.S. Bankruptcy Court for the Middle District of Florida held that, following a Chapter 13 bankruptcy discharge, a unit owner remained personally liable for condominium assessments until title was transferred. [Read more]

Bankruptcy Discharge Extinguishes Owner's Personal Liability for Assessments
In re: Ramirez, Case No. 08-29681-JKO, Chapter 13 (Bankr. S.D. Fla. Mar. 5, 2016)
Assessments: The U.S. Bankruptcy Court for the Southern District of Florida held that an owner's personal liability for condominium assessments was extinguished by a Chapter 13 bankruptcy discharge, but the association could still pursue an assessment lien on the unit. [Read more]

AllisonD (Florida)
Posts: 449

Posted:

Are the read more links supposed to be working? It was my understanding that if the assessments were discharged it was only up to the date the case was first filed and thereafter, the assessments started to accrue again. So in Montalvo, the unit owner would be responsible for the assessments that started from the date the case was filed. In Ramirez, since the lien is a preservation of rights to collect the assessments its up to the unit owner or bank, to defend. A defense could be that the assessments prior to a certain date were discharged. I would like to read the cases to see what I am missing.

SheliaH (Indiana)
Posts: 6,964

Posted:

That was my understanding as well.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

MikeD15 (California)
Posts: 5

Posted:

I would be agree with AllisonD.

JamesG11 (Florida)
Posts: 118

Posted:

Actually, the cases appear difficult to reconcile if you read the opinions, but that is not unusual among the various U.S. Bankruptcy Courts within a state (indeed, not infrequently bankruptcy judges within the SAME District reach disparate conclusions on unsettled areas of the law).

In Ramirez, the Southern District ruled that POST-petition assessments were discharged upon successful completion of a Chapter 13 plan. In Montalvo, however, the Middle District ruled that POST-petition assessments were collectible from the debtor until such point in time as a transfer of title of the property from the debtor to another party occurs. The Montalvo Court further ruled that it was irrelevant whether the debtor had surrendered the property in bankruptcy. The Court stated that the critical action was not the unilateral statement of intention of the debtor, but the actual transfer of title.

You can pull the cases up on PACER if you don't have either a Westlaw or LEXIS account.

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