NSW bankrupting non financial member

Discussion in 'Property Management' started by joesnr, 23rd May, 2020.

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  1. joesnr

    joesnr Member

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    I am looking for a flowchart similar to this previously posted, but am after one that describes the steps involved in recovering monies from a nonfinancial member within a body corporate all the way to making them bankrupt
    COVID-19 Emergency Legislation Flowchart for Notice to Vacate
     
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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  3. joesnr

    joesnr Member

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    Thanks terry
    What I am after is a detailed step by step flowchart or similar. I am aware of the bigger picture but i need ALL the steps including days for responses.
    We are in the process of doing this for several non payers and so far the process has taken more than a year
    I am aware of the variations, however these do not apply in our case/s as we commenced this process well before this pandemic and the courts have stated very clearly that they intend to continue ongoing cases, albeit not necessarily in person.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    I think the new bankruptcy laws will still apply. court process will continue but the enforcement of any judgement will be affected.
     
  5. Ted Varrick

    Ted Varrick Well-Known Member

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    @joesnr , what advice has your Strata Manager provided? Assuming you have one, they should be handling this process on your building's behalf.
     
  6. thatbum

    thatbum Well-Known Member

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    I don't know why you would need to bankrupt them as opposed to just enforcing a judgement debt against them.
     
  7. joesnr

    joesnr Member

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    yes they are handling this including the lawyers
    Unfortunately unless I keep on top of this they keep slipping. These issue have been ongoing for more than 2 years and have only started moving last year when I got involved (pushed)
     
  8. joesnr

    joesnr Member

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    They have nothing except a pension and an Apartment
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    I had call from a forum member once who had been served papers over a dispute involving unpaid rates. They were bankrupted and then it cost them about $50k to get out of it because of all the fees involved. They had a whinge about this but nothing they could do as they ignored the notice of bankruptcy.
     
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  10. thatbum

    thatbum Well-Known Member

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    ...enforce it against the apartment seems like the obvious answer.
     
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  11. Ted Varrick

    Ted Varrick Well-Known Member

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    Of course they keep slipping, as they are all probably on an hourly rate, and don't have any skin in the game, unlike all of the other owners.

    Are you on the Strata Committee, and if so, are you the Secretary?

    If you are only the Committee member, then what has, and is, the Secretary doing about this issue?

    If you are not on the Committee, then you need to find out what is going on, and get on the Committee, for starters, so you have some idea what's going on in your building.
     
  12. joesnr

    joesnr Member

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    To tedvarrick
    Yes I am on the committee. Actually, I am lucky :) as I hold 2 of the three positions, which is why I am after this info
    To Terryw
    One of our cases cost him nearly double the debt with legal fees and penalty interest
    To Thatbum
    Yes, of course, it will be enforced against the apartment, however, there are a myriad of steps that need to be gone through with each one having a response period (usually 3 weeks), which is why I am after a flowchart or detailed steps document.
    I will be talking to the Sheriff's office next week (I have a friend there)and he indicated that he might be able to assist
     
  13. thatbum

    thatbum Well-Known Member

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    I don't see how the timeline or response period is the critical issue. Are you in some sort of hurry or something?

    You have much bigger problems if you don't know or understand the process of seeking recovery of the debt. Why not consult with a lawyer?
     
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  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Why won't they pay up?
     
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  15. Ted Varrick

    Ted Varrick Well-Known Member

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    It's a good idea to appear reasonable thoughout this entire process (assuming that the Committee hasn't already).

    As per @Terry_w , has it been discussed with them the reason for the non-payment? And, further, is there any reason why the OC has not discussed/implemented a payment plan for them? This assumes that they are in genuine hardship, and not just just being obtuse over prior by-law breaches, perceived bias against them, and/or some other "dog ate my homework" excuse.

    Some more info might be helpful, as bankrupting a lot owner, whose assets are, as you have stated, "...a pension and an apartment...", at face value seems a little harsh.

    What does the prior Treasurer and Secretary of your Committee have to say about it, before you started moving it along?
     
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  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Ive seen a few of these and they are often situations where the owner is refusing to pay because of some sort of disagreement over something strata related.
     
  17. Ted Varrick

    Ted Varrick Well-Known Member

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    Possibly a good reason for an OC to consider investigating a costs recovery bylaw...
     
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  18. joesnr

    joesnr Member

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  19. joesnr

    joesnr Member

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    Ok more background
    The issue has been ongoing for at least 4 years, with at times having agreed to a payment plan, which was only ever followed for a little while before falling back again
    Previous Strata management never followed up the issue and there was no proper functioning committee previously. Therefore change of strata management company and a proper committee of 2, (nobody else interested) who are serious about following through with this
    This is not the only case, there are several others, also between 3-4 years. We are not sure about exact dates, as the handover from one management company to the new one was atrocious, with the old company having kept poor/no records or failing to pass them on.
    Therefore we have been struggling along trying to catch up
    yes Lawyers are involved every step and we are slowly catching up. Of course, there are several who seem to know how to delay/slow down things, not realizing that every delay costs them more in interest and legal costs. Yes we have a recovery by law
    Again lawyers/strata only follow on with the next step as we push them. This is why I am after a detailed step by step, so I look to be smarter/knowledgeable than I really am:)
    Non payment does not seem to be related to any particular reason. just that they have gotten away with it for so long
     
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  20. thatbum

    thatbum Well-Known Member

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    Then ask your lawyers more directly. This is really basic information that should form part of the legal advice/assistance.
     
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