CAI-NJ Sept 2020

DEBT COLLECTION... from page 13.

Your LAC has worked diligently and successfully to strike a reasonable balance and to work to amend the bill to protect community association rights. We are pleased to report that the more onerous provisions of the bill have been removed. Without these amendments, it could have made it very difficult to enforce maintenance fee obligations in community associations. At least five other states and the District of Columbia passed similar bills into law or have similar bills pending. In this sense, we are very pleased to have been able to get the “Without these amendments, it could have made it very difficult to enforce maintenance fee obligations in community associations.” bill amended in order to provide pro- tections for community associations as they seek to enforce maintenance fee obligations for all of the unit owners. S2423 is another recently introduced bill which increases and expands the New Jersey “Homestead” Bankruptcy Exemption to $345,000.00 of home equity. Very generally speaking, Bankruptcy law is Federal law, which relies on State law to delineate which assets of a debtor get liquidated to pay creditors and which assets of a debtor can be shielded from creditors. An Exemption means the asset can be protected from creditors. On the other hand, there are Exceptions to the

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