The Communicator - Volume 2, Issue 1 - (Page 13)

court lawsuit) in which the debtor will seek to have the bankruptcy court hold that the secured claim is not secured and is simply now an unsecured debt. What does this mean for associations? Associations many times are in the same position as the second deed of trust holder in the above example. Thus, in a Chapter 13 bankruptcy, an association’s secured claim through its NODA could be turned into an unsecured claim and paid nothing. This is particularly true in today’s real estate A little used bankruptcy provision dealing with secured claims (e.g., a Notice of Delinquent Assessment) now appears ready for stardom in a bankruptcy court near you. market. Unfortunately, there are few effective defenses to a Chapter 13 debtor modifying such a claim. (The best “defense” may be preventive in nature, e.g., accepting partial payments and being more flexible with repayment plans.) If an association finds itself in the position of considering contesting the modifying of its status, it is imperative that it retain an attorney who is familiar with bankruptcy and who is also familiar with homeowner association’s rights. ■ 407838_CommunityAssocBanc.indd 1 CA CM CERTIFIED MANAGEMENT FIRM Association tions, Inc. Communication Management Homeowner Assoc ia 12/19/08 12:32:45 PM Caroline McCormick 3732 Mount Diablo Blvd. Suite 395 Lafayette, CA 94549 (925) 285-4900 Fax (925) 285-4907 caroline@acihoa.com 368217_GlenCastle.indd 1 2/28/08 7:49:08 PM 402000_Association.indd 1 The Communicator 11:54:40 AM 12/2/08 • 13 http://www.cabanc.com http://www.acihoa.com

Table of Contents Feed for the Digital Edition of The Communicator - Volume 2, Issue 1

The Communicator - Volume 2, Issue 1 Contents President’s Message Does Your Insurance Agent Know Something You Don’t? Lien Stripping and Chapter 13 Bankruptcies Mortgage Crisis Impacts Directors Legislative Bill Status Report Annual Holiday Awards Banquet & Casino Night 2009 Events & Educational Calendar New Members Index to Advertisers

The Communicator - Volume 2, Issue 1

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