3 MARCH 2024

Karen Go was nearly made bankrupt two years ago by the strata manager of her block of flats in Sydney’s east over nearly $20,000 in strata levies and legal fees.  She was one of 306 NSW residents, or more than one a week, who faced forced bankruptcy proceedings from strata debt between 2019 and 2023, a legal process that means they can lose their homes over debts as low as $10,000.

The Owners Corporation Network of Australia, which represents owners corporations, is backing reform. Executive director Karen Stiles said people in genuine hardship should be treated with more compassion.

“The current debt recovery process is skewed against them and towards debt collection and legal firms doing brisk business in this area,” Stiles said. “Many of these firms are related to the strata management company, so they’re feeding them business.”

Read full article:>  https://www.smh.com.au/national/nsw/unjust-and-unfair-how-karen-nearly-lost-everything-to-strata-debt-20240303-p5f9d9.html

Related content:>  https://ocn.org.au/strata-debts-sending-more-aussie-homeowners-bankrupt/