3rd Circ. Clarifies Lien Enforcement On Bankrupt Homeowners
By Linda Chiem
Law360, New York (June 10, 2014, 5:48 PM ET) -- In a precedential decision, the Third Circuit on Monday clarified the standard for enforcing statutory liens over unpaid homeowners association dues against bankrupt homeowners, saying foreclosure — rather than a collection action against the individual — is the proper method for enforcing such statutory liens.
A three-judge panel of the Third Circuit clarified the standard, in a case that involved interpreting Pennsylvania's Uniform Planned Community Act in the bankruptcy context, which hadn’t yet been done by the Pennsylvania Supreme Court. The panel determined that in bankruptcy,...