Bankruptcy & Creditor's Rights

A recent Bankruptcy Court decision in New Jersey highlights two important issues for community associations: Record your Governing Documents and Timely file an objection to a Chapter 13 Plan if the Association is a creditor and objects to the treatment in the debtor’s Chapter 13 Plan.
Continue Reading The Importance for Community Associations to Record Governing Document and Timely File Objections to a Chapter 13 Plan

A common problem among finance companies seeking to enforce a commercial finance lease against a defaulted debtor/lessee is that documents are not fully executed or are otherwise disorganized. Unfortunately, for large finance companies that have hundreds, or even thousands, of accounts, not all the “i’s” are always dotted, nor are all the “t’s” always crossed.
Continue Reading The Enforceability of Commercial Finance Leases Executed Only by the Debtor

Equitable mootness is a doctrine that allows a court to avoid hearing the merits of a bankruptcy appeal because implementing the relief requested by the appellant would produce a perverse outcome to the bankruptcy plan and/or cause significant injury to third parties. The Third Circuit Court of Appeals recently revisited the application of the doctrine

In the September edition of Mid-Jersey Business Magazine, Timothy Duggan, Chair of the firm’s Bankruptcy & Creditor’s Rights group, authored an article that  outlined what businesses considering bankruptcy protection need to consider.  

Back From The Brink discusses the various types of bankruptcy filings available as well as how businesses experiencing financial difficulties can work

 In a reported decision issued July 3, 2013, the Appellate Division of the New Jersey Superior Court held that the holder of a first mortgage which refinances its mortgage without obtaining a discharge or subordination from a subordinate mortgagee of which it was aware may still maintain its priority position, at least in part. 

Community associations should always record their respective Governing Documents and this becomes of particular importance if the documents provide for the creation of a lien upon failure to pay assessments. This is never more true than as reflected in a recent Bankruptcy Court opinion in In re Nacinovich, Adv. Case No. 13-1074, decided by the Honorable Michael B. Kaplan, U.S.B.J., May 31, 2013, in which the Court considered allegations that a homeowners association remittance of a statement to a debtor which included sums due beyond the amounts due in its pre-petition lien claim was a violation of the automatic stay.
Continue Reading The Importance of the Declaration of Covenants and Restrictions for Community Associations Filing Liens