Delinquency – Condo Dues In Illinois And How Bankruptcy Can Help

Delinquency – Condo Dues In Illinois And How Bankruptcy Can Help

November 3, 2022

Condominiums (Condo) include multi-unit apartments and townhouse and  some single family house. While co-ops are a bit different the following  generally apply to the following.


Owners  of Condo units are responsible for monthly dues or assessments. In  addition the Condo Association can levy special assessments. The special  assessments can be required to be paid in a lump sum or over a period  of time.

What happens if I fall behind? What can the Condo Association due? What can I do to protect myself?


Generally  monthly condo payments are due on the first of the month. If received  after the 15th of the month a late charge is levied.

When  the condo is behind 31 days or more the Association will send a  collection letter for the full amount due and the day it expect the  payment to be made. Many Associations hire Management Companies. When a  Management Company sends the letter they will likely add another fee.

The  collection letter must comply with the Fair Debt Collection Practices  Act allowing the condo owner time to dispute the delinquency and/or the  amount demanded

At some point the Association will refer the matter to a law firm who concentrates in collecting defaulted condo dues.


Generally, they too will send a demand letter which will include so-called reasonable attorney’s fees.


As  the matter progresses there will be a title search and thereafter a  recorded Lien placed on the unit. Again more costs and fees.


The  Condo Association can proceed with a law suit to gain possession of the  unit. If a judgment is entered the possession can be enforced by the  sheriff.


While  rare the Association can actually file a foreclosure. It is rare  because most condo have mortgages and other liens making it impractical.  But if there is a lot of equity there is nothing to stop them.


When  the condo unit is subject a foreclosure or if the condo owner abandons  the unit a Money Judgment can be entered against the owner. After that  they can pursue collection the same as other creditors including wage  garnishment and bank garnishments.



A  condo owner can file a Chapter 13 assuming the ability to pay the  current condo dues and repay the back amounts over a period up to 5  years


At  any time the condo unit owner can file a Chapter 7 to obtain a  discharge of back condo dues (although a lien will remain.) However, the  unit owner is legally responsible for future condo dues.

Frequently  there is a pending foreclosure which will end with a sheriff’s sale.  The unit owner can file a Chapter 7 and receive a discharge of the  mortgage debt and condo arrearages but will have to pay future dues.  Pending an eventually move this might be cheap rent.

On  the other hand if the unit owner has moved out of the unit it might  well be best to wait to file a Chapter 7 until after the mortgage  company completes its sheriff’s sale.

If  you are have a condo dues arrears problem please feel free to contact  us. We can discuss your problem and let you know what options you have.  Our consultation is Complimentary and confidential.

Share this post:

Leave a Reply