OC Fees and bankruptcy

In Owners Corporation No 1 – PS507443P v Iglesias [2015] VCAT 558, a lot owner who declared bankruptcy was found liable for OC fees from the date of bankruptcy forward even though the property had vested in his trustee for bankruptcy. The bankrupt was still a “lot owner” for the purposes of the Act. However, if the trustee in bankruptcy is receiving rents from the property, it may be necessary to issue invoices to the trustee because the trustee may reasonably be expected to pay outgoings from the profits.

Fees owing at the date of bankruptcy were provable as a debt in the bankruptcy and could not be recouped other than as a claim in the bankrupt estate.

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