Collections & Delinquent Owners

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  • What should a Board do when an owner stops paying assessments?

    Act.


    One of the most common collection mistakes is allowing a delinquent account to grow for months—or years—without meaningful action.


    Boards have financial responsibilities to the entire membership. When one owner does not pay his or her share, the financial burden does not disappear. It shifts to everyone else.


    Associations should maintain a consistent written collection process and refer delinquent accounts to counsel when appropriate.

  • Can an association charge late fees?

    Potentially, when authorized by applicable law and the governing documents and when the amount and procedure are legally supportable.

  • Can an association recover attorneys' fees incurred collecting assessments?

    Illinois law and association governing documents may permit associations to recover certain attorneys' fees and costs associated with collecting delinquent assessments.


    The particular facts and legal requirements matter.

  • Can an association place a lien against a delinquent owner's unit?

    Assessment obligations can create lien rights under Illinois law.


    How those rights arise and how they should be enforced depends upon the type of association and circumstances involved.

  • Can an association evict an owner for unpaid assessments?

    Illinois condominium and community association collection law provides powerful remedies in certain circumstances, including possession-related remedies.


    This area is procedural and should be handled by counsel familiar with association collections.

  • What happens if a delinquent owner files bankruptcy?

    Stop and contact association counsel.


    A bankruptcy filing can trigger an automatic stay restricting certain collection activity. Continuing collection efforts without understanding the stay can expose the association to unnecessary risk.


    Bankruptcy does not necessarily mean the association will recover nothing, but the strategy changes immediately.

  • What happens when a delinquent unit is in foreclosure?

    The association should monitor the foreclosure.


    Ignoring a lender foreclosure can cause the association to miss importantdevelopments affecting possession, ownership and collection strategy.

  • Should a Board treat every delinquent owner the same?

    Associations should enforce collection policies consistently, but identical treatment does not always mean identical outcomes.


    Owners may present different balances, bankruptcy status, foreclosure circumstances, payment histories or other legally significant facts.


    Consistency means applying established standards fairly—not ignoring material differences between cases.