J. Thurmond: “I rise today to offer an amendment to S. 540 to clarify an ambiguity in the Bankruptcy Code which has led to confusion…”

“I rise today to offer an amendment to S. 540 to clarify an ambiguity in the Bankruptcy Code which has led to confusion, conflicting judicial decisions, and unfair outcomes in many cases. This amendment relates to bankrupt debtors who own condominium or cooperative units in a community association. It is necessary to correct a line of cases in which courts have held that future payments by the debtor to a community association are discharged in bankruptcy. This amendment simply makes clear that assessments by community associations which become due after the bankruptcy order for relief are not discharged, as long as the debtor receives the benefits. Mr. President, today there are some 5 million condominium units in our Nation, in addition to cooperative units and other forms of community associations. Together, these community associations represent a significant percentage of this country's housing.”