22nd Jul 2018

Ninth Circuit Court of Appeals held that a debtor’s personal obligation to pay condominium association assessments was not the result of a separate, post-petition transaction but was created when she took title to the condominium unit. As a result, the debt for the assessments arose pre-petition and is dischargeable under Section 1328(a), unless the Bankruptcy Code provides an exception to discharge. The Court further held that personal debt arising from condominium association assessments is not excepted from discharge under Section 1328(a), and that the Constitution’s Fifth Amendment Takings Clause states that “private property [shall not] be taken for public use, without just compensation” does not apply. (Goudelock v. Sixty-01 Association of Apartment Owners, US Court of Appeals for the Ninth Circuit, Docket No. 16-35384, July 10, 2018). Read Opinion Here.

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