Stripping Condo Lien In Chapter 13

Homeowners have been able to strip the liens of condominium associations in chapter 13 just as they have second mortgages.  This procedure is possible when the value of the debtor’s residence is less than the balance of the first mortgage. Miami Bankruptcy Judge Cristol has previously had a written decision on this issue.  Fort Lauderdale bankruptcy practice has also enbled individuals in chapter 13 to strip these liens.

To clarify, the amounts due to the association prior to the filing of the bankruptcy can be eliminated as a lien on the home.  The ongoing obligations after the filing of the bankruptcy would not be eliminated.

Another recent court decision has upheld the ability of the owner to eliminate the lien of the association in a chapter 13.  In re Plummer, 2013 Bankr. Lexis 245, Case No. 8:12-bk-03870-MGW(Jan 14, 2013)(Middle District of Florida).



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