Real Estate Debt that may Survive Bankruptcy

When a Debtor files for chapter 7 in New York and abandons property which is very common they might think they are eliminating all of their debts associated with this property. While many are indeed discharged such as first and 2nd mortgages, real estate taxes, etc, some are not. Fine and penalties incurring after the filing of the case and before the bank takes back the property may survive. These can be substantial since banks are often not in a rush to take back the property.
Furtheremore, pursurant to the the Bankruptcy Reform Act of 2005, section 523(a)(16), Condomium fees incurred after the filing date and before the bank takes the property back are not discharged.