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Our strata manager has recently advised us that one of the owners in our complex has been referred to a debt collection agency.
It seems that the non-payment has been going on for some years now.
The debt stands at present to be just under $7000 including final notice fees from what I can gather.
Final notices have reportedly been ignored, as has the agreement to stick to a payment plan.
Is there any other process that should be taken? Can we refer directly to NCAT rather than a debt collection agency? Is there any other information we should be seeking?
At the last AGM one owner asked about bankruptcy – from what I recall our strata manager mentioned that proceeding can’t be commenced until an amount of $5000 is owing? Can anyone confirm what this is about?
Finally, I wonder if anyone has successfully dealt with this issue through other avenues. They are a young family and I sympathise with them.
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The process that’s underway seems to be pretty much the right thing, although you could put a motion to the next general meeting that the Owners Corp stops adding penalty interest to the debt Under Section 85(2) of the Act.
It may seem harsh to get debt collectors involved but you have to protect the interests of all owners and that may mean getting a court order that when and if the family sell their flat, the owners corporation will be repaid all the money it’s owed.
This family is clearly struggling but by not bringing this to a head, your Owners Corp may just be enabling them to get into more debt. Maybe they could move into a rental in your block, sell their flat, clear their debts and start again. Would that be so bad?
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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