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.
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