Legal Question in Bankruptcy in Minnesota

Unsecured vs. Secured Debt

A townhouse has a legal right to place the outstanding dues as a lien against the property, thereby making them a secured debt. However, if they do not place the lien on the property, do the outstanding dues still attach and become a secured debt, or are they unsecured until attached to the property, thereby dischargeable in bankruptcy court?


Asked on 10/10/01, 11:23 am

1 Answer from Attorneys
David Kelly-952-544-6356 Kelly Law Office

Re: Unsecured vs. Secured Debt

My understanding has always been that they attach to the property automatically, because the townhome bylaws - which are part of the real estate title - say that they do.

I don't believe that they would be dischargeable.

But to know for sure you better have a lawyer take a close look at the bylaws of the association and the title history of the property. The whole question could turn on how well or how poorly the townhouse development was organized when it was set up.

Good luck.

This is not intended to create an attorney-client relationhsip and is for general information purposes only.

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Answered on 11/23/01, 11:18 am


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