Arizona Bankruptcy Fees
11 U.S.C. 523 provides discharge will not be allowed (16) for a fee or assessment that becomes due and payable
after the order for relief to a membership association with respect to the debtor's interest in a dwelling unit
that has condominium ownership or in a share of a cooperative housing corporation, but only if such fee or
assessment is payable for a period during which - (A) the debtor physically occupied a dwelling unit in the
condominium or cooperative project; or (B) the debtor rented the dwelling unit to a tenant and received
payments from the tenant for such period, but nothing in this paragraph shall except from discharge the debt of a debtor for a
membership association fee or assessment for a period arising before entry of the order for relief in a
pending or subsequent bankruptcy case.
Arizona Bankruptcy Fees - In Practice
Fees charged by condominium associations must be paid. Further, when protected by a consensual lien, the full
amount must be paid to avoid foreclosure.
The Federal process of filing necessarily incorporates state law requirements. These state law requirements are
set forth in statutes, rules and case law opinions which frequently alter the operation of law. As a result of
these precedents, Arizona bankruptcy cases are unique to the state, as well as unique to each individual who
files. All alternatives provided by law may not be available because of differing individual financial histories
or prior case filings.
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