What should a community association do immediately upon learning of an owner's bankruptcy filing?

When a community association learns of an owner's bankruptcy filing, it is crucial for the association to immediately contact legal counsel. This action is necessary because bankruptcy initiates specific legal protections for the debtor, including an automatic stay, which halts most collection efforts and requires that creditors adjust their approaches accordingly.

By consulting with legal counsel, the community association can gain important insights into the legal implications of the bankruptcy filing, understand the rights of the association in this situation, and determine the appropriate steps to take regarding the owner's unpaid assessments or debts. Legal guidance is paramount to ensure that the association remains compliant with bankruptcy laws and avoids actions that could lead to legal complications or penalties.

While other options may initially seem plausible, they are not advisable under the circumstances of a bankruptcy filing. Continuing collection efforts or notifying other owners can breach legal protocols set forth in bankruptcy law, while writing off the debt would be premature without understanding the association's rights and recovery options in the context of the bankruptcy proceedings. Thus, engaging with legal counsel is the most prudent and necessary first step.