Debtors who “Surrendered” Condominium in Chapter 7 did Not Discharge Post-Petition Condo Assessments where Title was Never Transferred

Debtors who “Surrendered” Condominium in Chapter 7 did Not Discharge Post-Petition Condo Assessments where Title was Never Transferred

The Debtors filed this bankruptcy case under chapter 13 of the Bankruptcy Code on September 20, 2011. They converted the case to chapter 7 on June 20, 2013. After converting the case, the Debtors filed a Statement of Intention (Official Form B108), stating their intention to surrender their interest in the condominium unit that is subject to ongoing condominium fees assessed by Condominium Association (“COA”). The Debtors received their chapter 7 discharge on September 30, 2013. The case was closed on October 3, 2013.

The Debtors now seek to reopen the case to enforce their discharge order. They assert that, since June 4, 2015, COA and its counsel have violated the discharge order by attempting to collect condominium assessments that accrued after the commencement of the bankruptcy case and that were discharged.

COA objects to the reopening of the case. Based on 11 U.S.C. §523(a)(16), COA asserts that no discharge violation could have occurred because the condominium fees assessed post-petition were not discharged.

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