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Unpaid strata, what can OC do?

Discussion in 'Accounting & Tax' started by EN710, 7th Jul, 2015.

  1. EN710

    EN710 Well-Known Member

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    Not sure if this is the right thread.

    One of the owner in my building are in arrears for more than 6 months and the debt is piling up. What can the OC do?

    Strata manager mentioned something about lodging a statement of claim. How does that work?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I have seen a person bankrupted over unpaid strata. Statement of claim served, it was ignored. OC obtained a judgment that $X was owed. A bankruptcy notice was then served, it was ignored. Before she knew it a trustee in bankruptcy was appointed and the fees had amounted to about $50k at this stage. Not sure if her unit was sold by the trustee or not.
     
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  3. EN710

    EN710 Well-Known Member

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    Thanks Terry. Will talk to other owners. The amount owned at this time is not yet $50K, but it is better to address it now than later.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    In my example the amount owning was only a few thousand in the beginning. But interest, legal fees and trustee fees were incurred.
     
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  5. hobo

    hobo Well-Known Member

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    I joined the Body Corp committee of a complex that has some serial non-payers; we've successfully sought debt collection / judgements / forced sale of units to recoup BC unpaids and legal fees etc.

    Don't delay - $50k is a large bill and as @Terry_w mentions, legal costs will add to it quickly. Start the process now.
     
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  6. Pistonbroke

    Pistonbroke Well-Known Member

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    I agree with the above - you need a judgement before you can move forward.