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Personal Insolvency Bill excludes management company debts

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  • 09-07-2012 2:17pm
    #1
    jd
    Registered Users Posts: 5,699 ✭✭✭


    It may be of interest that the draft insolvency bill excludes OMC service charges from the debt that may be written off

    http://www.oireachtas.ie/documents/bills28/bills/2012/5812/b58112d.pdf
    “excluded debt”, in relation to a debtor, means:
    (a) any liability arising out of a domestic support order,
    ..
    (g) any debt due by the debtor to any owners’ management
    company in respect of annual service charges under 35
    section 18 of the Multi-Unit Developments Act 2011 or
    contributions due under section 19 of that Act,


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Good. Management companies don't really have the financial resources to write off or otherwise absorb this kind of debt, as they're effectively not-for-profit co-ops.

    I guess the logic here is that if someone claims insolvency, any properties they have will be taken into possession and outstanding management fees are then due by the new owner. If they weren't excluded, then the new owner (i.e. the bank) could force the outstanding management fees to be written off before taking possession of the property.


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