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Hi all,
We have a bankrupt owner in our complex. They have declared bankruptcy before and from what I understand is complex with a number of properties and a business.
The trustee for the bankrupt estate has had the property in their possession for over 18 months now with no sign of putting it up for sale. And of course the debt owing to the strata was accruing way before that, and is now sizeable with numerous special levies for capital works outstanding as well .
The unit is rented out with the tenant apparently still paying rent directly to this owner and their business is still operational.
Can the trustee legally keep stretching this out ? How long for ? Or is that the million dollar question ? The accruing interest obviously is not a deterrent. We are aware the debt stays with the lot when/if it gets sold, but extremely frustrated with carrying the owner financially when planning and budgeting for projects past, present and future.
Mindful also every time we get our strata manager and our lawyer to follow up and get information is also costing us and adding to that debt.
Thanks in advance.
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The short answer is yes – I am not a lawyer, but if experience is a guide, then the trustee can stretch this out and I doubt there is much you can do about it without engaging lawyers. One consideration is whether the ‘bankruptcy’ is voluntary or not.
One of our owners (in a large scheme in NSW) turned an $18,000 debt in levies to over $100,000 debt in levies/legals/interest in just over a year! The OC eventually got all their monies (plus interest) back but I still shake my head at the stupidity and nonsense of it all.
Good luck
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