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VOTING RIGHTS IN BANKRUPTCY

In the event an owner files for Chapter 7 bankruptcy protection, the owner loses his/her voting rights. Immediately upon filing, the owner's unit and voting rights transfer to the federal court. The court then appoints a trustee to oversee the prioritizing and payment of debts. Accordingly, the trustee and not the debtor would have the right to cast votes in any membership election.

RECOMMENDATION: Boards should check with legal counsel before taking action involving anyone who has filed for bankruptcy.

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC