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What should I do after stopping payment on my condominium due to bankruptcy?

What should I do after stopping payment on my condominium due to bankruptcy?

Full question:

I have stopped payment on a condominium at my bank and need to notify the company. I am facing bankruptcy with no means of continuing payment. What else can I do?

Category: Debts and Credit
Date: 04/07/2025
State: Louisiana

Answer:

The type of payment you stopped is important. If it's a mortgage loan for the condominium, you may be defaulting on that loan, which could lead to foreclosure by your lender. If it's a recurring fee to your condominium association, you could also default on those obligations. Most associations have rules that allow them to collect unpaid fees, which can result in significant collection costs and potential foreclosure.

Both scenarios can negatively impact your credit. Filing for bankruptcy may help discharge some debts, but it won't eliminate any tax liability that may arise from a foreclosure sale. It's advisable to consult with a local attorney experienced in real estate and bankruptcy law to discuss your specific situation.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What disqualifies you from filing bankruptcies?

Certain factors can disqualify you from filing for bankruptcy. For example, if you have filed for bankruptcy in the last eight years, you may be ineligible for Chapter 7 bankruptcy. Additionally, if you fail the means test, which assesses your income against your debts, you may not qualify. If you have committed fraud or concealed assets during the bankruptcy process, this can also disqualify you. It's important to consult with a bankruptcy attorney to evaluate your specific circumstances.

What debts are not included in a bankruptcy?

Some debts are not dischargeable in bankruptcy, including most student loans, child support, alimony, and certain tax obligations. Debts incurred through fraud or willful misconduct are also typically excluded. Additionally, secured debts, like mortgages, may not be eliminated if you wish to keep the property. Always consult a bankruptcy attorney to understand which debts apply in your situation.

What type of debt is not eligible for bankruptcy?

Debts that are generally not eligible for discharge in bankruptcy include student loans, child support, alimony, and certain tax debts. Additionally, debts incurred through fraudulent actions or willful misconduct are typically excluded. If you want to keep secured property, such as a home, the related debt may also not be discharged. It's advisable to speak with a bankruptcy attorney for tailored guidance.

Can you file bankruptcy on any debt?

You cannot file bankruptcy on all debts. Certain debts, such as child support, alimony, and most student loans, are not dischargeable. Additionally, debts incurred through fraud or willful misconduct are excluded. While bankruptcy can eliminate many unsecured debts, like credit cards, it’s crucial to consult with an attorney to understand which debts can be discharged in your case.

What is the 2 year rule for bankruptcy?

The '2-year rule' typically refers to the requirement that you must wait two years after a Chapter 7 bankruptcy discharge before you can file for another Chapter 7 bankruptcy. This rule helps prevent abuse of the bankruptcy system. However, the waiting period can vary based on the type of bankruptcy filed. Consult with a bankruptcy attorney for specific guidance related to your situation.