Homeowner Declares bankruptcy What can we do

Hi All,

We have a homeowner that recently declared bankruptcy. This is not a case of an unfortunate circumstance. This person used to be the former treasurer of the condo. After using condo funds to support their gambling habit at a nearby casino, they abandoned their condo and moved back to their home country for more than two years. We put them into collections and the bank paid some funds, but stopped paying when it was obvious that they were no longer going to pay their mortgage. Just before the bank was about to foreclose, the homeowner returned and declared bankruptcy. Had the bank foreclosed I think we would have gotten paid about 9 months of back condo dues under State law, but now that they declared bankruptcy I believe the debt will be extinguished and we probably won't see anything. Not only that - it seems like they intend to drag our the bankruptcy proceedings as long as possible to live free in our condo. Given the small size our our condo, we had to raise condo dues significantly to cover the lack of payment from this unit for an extended period. This person is obviously taking advantage of the other residents and using laws that were meant for less fortunate people to get a fresh start. While we wait out the bankruptcy proceedings I was wondering if there is anything I can legally do to stop supporting this behavior. My first inclination was to shut off the water to the unit, which is paid for through common charges, but I don't think I would be on firm legal ground to do that. Any other ideas?

This is going to be basically a wash. However, to make it not a complete one, time to make sure a lien is filed ASAP for the dues owed. HOA dues I do not believe fall under bankruptsy. So the HOA can still pursue to collect. I would not foreclose on the lien. That is just a stop the bleeding process. Plus doing the job of the bank.

Make sure to file a lien. Check to see if your in a state that allows "super liens" which puts you on the same level as the Bank. Otherwise the bank always gets paid first and foremost. The rest of the debtors get what they get if any to be gotten.

Yes, the State statutes indicate that the condo has super lien of 6 months, I thought it was 9 months.

Why didn't we file criminal charges - that is a good question, in retrospect it seems like the correct thing to do. We did recover the funds that were taken and at the end this was what we were ultimately hoping to achieve. But the gall to come back after two years and declare bankruptcy has made me regret that decision.

Yes, the State statutes indicate that the condo has super lien of 6 months, I thought it was 9 months.

Why didn't we file criminal charges - that is a good question, in retrospect it seems like the correct thing to do. We did recover the funds that were taken and at the end this was what we were ultimately hoping to achieve. But the gall to come back after two years and declare bankruptcy has made me regret that decision.

Yes, the State statutes indicate that the condo has super lien of 6 months, I thought it was 9 months.

Why didn't we file criminal charges - that is a good question, in retrospect it seems like the correct thing to do. We did recover the funds that were taken and at the end this was what we were ultimately hoping to achieve. But the gall to come back after two years and declare bankruptcy has made me regret that decision.