HOA files objection to bankruptcy plan

A Johnstown homeowners association has filed an objection to the proposed confirmation of the bankruptcy plan filed by Sandra and Lee Oldenburg.

The Oldenburgs filed for personal bankruptcy in August last year and filed three plans that the bankruptcy judge declined to confirm. He gave them “one last chance” to file a plan, which they did on Feb. 29.

The Carlson Farms Homeowners Association in Johnstown became involved in the personal bankruptcy because it has alleged that Sandra Oldenburg was unable to account for about $400,000 of the association’s funds when she was a part owner of a Fort Collins firm that managed HOAS in the region. The HOA filed an adversarial case within the bankruptcy.

Oldenburg’s property-management company, Noco Real Estate Solutions Inc., which had managed multiple HOAS, closed out operations with those associations and abruptly shut down, leaving some of them uncertain about their bank account balances.

Carlson Farms, in its objection to confirmation, said that the couple’s fourth reorganization plan “is not feasible.” Sandra Oldenburg is under investigation related to her work with Noco Real Estate Solutions and depending upon how that investigation comes out, the couple may be on the hook for more expenses than have been identified, the association wrote.

Other HOAS, some that are not aware of the status of the bankruptcy, may have later claims and may file lawsuits that would affect the couple’s expenses, Carlson Farms wrote.

“The plan is not filed in good faith. … The debtors filed this plan in order to frustrate the association’s ability to prosecute its claims in the state courts,” the objection said.

Multiple deadlines are approaching in the Oldenburg case, including a telephone conference on April 4 with the bankruptcy judge.

An attorney for the Oldenburgs did not respond to an email seeking comment.

The case is Sandra Oldenburg and Lee Oldenburg, Chapter 13 bankruptcy, case number 202313858, filed Aug. 28, 2023, in U.S. Bankruptcy Court for the District of Colorado.