answersLogoWhite

0


Best Answer

From the association's viewpoint, a positive aspect is that this filing presents a position to all creditors that the association is working through its cash flow/ debt issues, so that payments can be made to retire debts albeit under terms different from the original debt terms.

Because this statute provides for the appointment of a trustee who essentially takes over the business operations of the association, the volunteer leaders of the association can learn from a knowledgeable leader about how to operate the business of the association and prevent the issues that precipitated the bankruptcy.

One disadvantage may be for association vendors that are small businesses, who depend on the original terms of their agreements to provide services to the association and its members, for their livelihoods.

Your association attorney can best review your particular situation and point out specific pros and cons for your association.

Bankruptcy-centric amendments to this answer are welcome, as are debtor-centric amendments.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the pros and cons of a condominium association filing for chapter 11 bankruptcy protection?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

Can bankruptcy hurt you?

Whether you are filing Chapter 13 or Chapter 7 bankruptcy, your credit score will be directly impacted for 7-10 years AFTER you exit protection.


Will you get your tax refund if you file for bankruptcy?

Whether you are entitled to your tax refund will depend on what type of Chapter of bankruptcy you are filing and whether the bankruptcy exemptions can be used to protect the tax refund. If you are filing for Chapter 7 bankruptcy then you can generally keep the refund if the available state bankruptcy exemptions provide protection for it. If you are in a Chapter 13 bankruptcy you are typically required to turn over the tax refunds during the life of the Chapter 13 case.


How long does it take after a bankruptcy is discharged to show on your credit report?

The amount of time a bankruptcy stays on your credit report after discharge differs between Chapter 7 and Chapter 13 Bankruptcy. With Chapter 7 bankruptcy, the Chapter 7 stays on your credit report for 10 years. Chapter 13 bankruptcy, after discharge, it shows for 7 years on your credit report.


What does the voluntary dismissal of a chapter 13 bankruptcy mean for the debtor and creditors and the debtor's credit report?

When any bankruptcy action is dismissed for any reason the debtor(s) lose(s) bankruptcy protection. This means creditors may pursue collection of the debt, including, in most situations filing a lawsuit. A chapter 13 bankruptcy dismissal will remain on the debtor's credit report for 7 years.


In a Chapter 7 bankruptcy a person filing for relief is called a?

In a Chapter 7 bankruptcy, a person filing for relief is called a

Related questions

What protection does Chapter 11 Bankruptcy offer?

Chapter 11 is the bankruptcy code issued to a business who files for bankruptcy. This type of bankruptcy protects a business and will allow it to get running again. If a business fails and applies for chapter 7, they must sell everything and give the proceeds to creditors. A person on chapter 11 does not have to do this.


Can bankruptcy hurt you?

Whether you are filing Chapter 13 or Chapter 7 bankruptcy, your credit score will be directly impacted for 7-10 years AFTER you exit protection.


Has bachrach filed for bankruptcy?

Yes, on May 6th, 2009, Bachrach LLC filed chapter 11 bankruptcy protection.


Did Vlasic go bankrupt?

In 2001, Vlasic filed for Chapter 11 bankruptcy protection


Where can one find experienced chapter 13 bankruptcy lawyers?

Rick Mitchell Law offer experienced Chapter 13 Bankruptcy Attorneys. Most clients who need Chapter 13 bankruptcy protection have issued with businesses and partnerships that need to be unwound or otherwise dealt with.


Will you get your tax refund if you file for bankruptcy?

Whether you are entitled to your tax refund will depend on what type of Chapter of bankruptcy you are filing and whether the bankruptcy exemptions can be used to protect the tax refund. If you are filing for Chapter 7 bankruptcy then you can generally keep the refund if the available state bankruptcy exemptions provide protection for it. If you are in a Chapter 13 bankruptcy you are typically required to turn over the tax refunds during the life of the Chapter 13 case.


Is Indalex filing bankruptcy?

indalex and it's 4 holding companies have filed for chapter 11 bankruptcy protection in us court in Delaware


Bankruptcy and Debt?

If you have a mountain of debt that will force you to file for bankruptcy, there are two types of protection that you can file for with the bankruptcy courts. The first kind of bankruptcy protection is called chapter 7 bankruptcy. Under chapter 7 bankruptcy, your assets will be liquidated and the proceeds from the sales will go towards paying off your debts. Most remaining debts will then be discharged by the courts. The second kind of bankruptcy that you can file for is called chapter 13 bankruptcy. Chapter 13 bankruptcy is more closely related to debt consolidation in that your debts are reorganized and a payment plan is set up between you and your creditors. Chapter 13 bankruptcy is sometimes called a working man's bankruptcy because one of the requirements of filing for the protection is having a job with a steady income. In a chapter 13 bankruptcy filing, you and your lawyer will devise a payment repayment plan that explains to the courts how you will handle your creditors. Most payment plans allow you to make payments for a period between 30 and 60 months after the initial filing. According to current bankruptcy laws, the debtor must prove to the courts that he will be able to carry out the plan for the duration of the time period. Current chapter 13 bankruptcy laws give judges the ability to factor in your living expenses while repaying your debt. However, federal standards are in place that makes it difficult for judges to customize expenditures on a case to case basis. Chapter 13 bankruptcy can also be a punishment for those that have file for chapter 7 bankruptcy fraudulently. Many people prefer to file for chapter 7 bankruptcy because they will not have to repay most of their debts. However, not everyone qualifies for this kind of protection. In order to qualify for chapter 7 bankruptcy, a person must make no more than $167 over the median income of the state. If the courts find out that a person does violate this requirement, the chapter 7 protection can be revoked and changed to chapter 13. Most people that file for chapter 13 bankruptcy will also be required to attend classes that will teach them about money management and personal finance. If you fail to attend the classes or do not pass, your bankruptcy may be revoked, which will erase any protection that you were granted from your creditors. The laws surrounding chapter 13 bankruptcy are quite complex. Should you ever have to file for bankruptcy, hire a bankruptcy attorney who can guide you through the process. Even though your finances may be tight, hiring a bankruptcy lawyer can save you time and make sure that your interests are protected in the wake of your looming bankruptcy.


How is the monthly dues of a home owners association handled in a chapter 7 bankruptcy?

Your bankruptcy attorney is best prepared to answer your question, especially if you expect to continue living in the home.


Is Bally's total fitness filing bankruptcy?

Yes, they are filing Chapter 11 bankruptcy protection with a restructuring agreement that allows them to raise $77.5 million in new cash.


What happened to World Religious Travel Association?

The World Religious Travel Association filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Colorado on Jan. 7, 2011.


How soon after can you file for chapter 13 after your first filing?

If you are facing some serious financial issues, you may consider filing for chapter 13 bankruptcy protection. If you do file keep in mind that there is no limit to the amount of times you can refile for the same protection.