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Ninth Circuit Legal Decision Affects All West Coast Community Associations re: Assessments

Last week, the 9th Circuit Court of Appeals issued an opinion that will impact condominium and homeowners who file for bankruptcy. In essence, the law has changed such that it will be more difficult to collect assessments under a certain type of bankruptcy. Furthermore, there will be new burdens on management companies, attorneys, and debt collectors to assure that associations do not attempt to collect future assessments when an owner has obtained a discharge in a Chapter 13 bankruptcy. The case, Goudelock v. Sixty-01 Association of Apartment Owners, involved a condominium owner in Washington state who filed a Chapter 13 bankruptcy. Individuals who file for Chapter 13 bankruptcy typically e

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