In a novel ruling, condominium fees are discharged in a chapter 13 bankruptcy case!
Condominium fees accruing post-bankruptcy must be paid perpetually by a debtor until the condo is sold by the foreclosing lender. A novel court decision has discharged condo fees in a chapter 13 case, based on the absence of the legal language that prohibits such discharge in a chapter 7, 11 or 12 case. This ruling brings hope to financially distressed condo owners who cannot afford to make these payments on a property in which they do not have possession. For additional questions, please feel free to reach out to us, and for a brief review of this issue, please see the following article.