A $2,000 debt owed to apartment building’s strata management has become a legal and financial nightmare for Canberra-based Greek Australian Amalia Vatavalis.

Speaking to Neos Kosmos, Vatavalis says she could have repaid the amount within four months had she been allowed to set up an affordable payment plan.

Her case, unfortunately, is not an isolated one. According to evidence presented to the ACT Legislative Assembly’s Committee on Strata Management, half of Canberra’s bankruptcy filings in the past year have been linked to unpaid strata fees.

Vatavalis, who is self-employed and undergoing treatment for recurring cancer, was already struggling through an intense period of health and personal hardship. She was unable to work due to chemotherapy and surgeries and was also supporting her mother, who was diagnosed with advanced cancer and passed away in April.

“Because I run my own business, I don’t get paid sick leave, so, if I don’t work, I don’t get paid. That’s how I fell behind on my commitments, including strata fees.”

First diagnosed with cancer in 2018, Vatavalis faced a recurrence in 2023 and now undergoes chemotherapy every six months. The illness and treatment has impacted on her work and capacity to earn an income.

“The third week completely wipes me out. I can’t work at all for days,” Vatavalis said.

In April last year, she requested a payment plan from her strata management to lessen the financial burden of finding $2000 and to enable her to meet her obligations.

Strata management initially agreed, she said but “asked for $1,000 a month. I countered with $500 a month, which they rejected.”

Unbeknownst to her, the debt had already been referred to a debt collection agency—incurring additional fees she wasn’t aware of until much later.

Tawanda Mukamuri, a lawyer with Care Consumer Law in the ACT, told Neos Kosmos that under current legislation, strata managers are not required to notify property owners before referring debts to collectors.

“All that’s required is a levy notice with 28 days to pay. If unpaid, the matter is escalated—often without further notice.”

Though Vatavalis continued to pay her ongoing strata fees, the $2,000 debt from her period of illness remained. By the time she realised legal proceedings had begun, she was summoned to the ACT Civil and Administrative Tribunal (ACAT).

Her mother passed away on April 2—only a month before the hearing. The tribunal officer acknowledged her grieving and, despite no legal requirement to do so, allowed her to repay the remaining $800 in $200 monthly instalments.

Mukamuri explains that 22 per cent of ACT residents live in strata-managed properties and yet legal protections for such homeowners are alarmingly minimal.

“In sectors like finance or utilities, creditors must negotiate payment plans and are barred from taking legal action during hardship arrangements,” he said.

“That’s not the case with strata. If someone can’t pay, their debt can be sent to collectors—who add fees—and then to court, which racks up legal costs. If the total debt exceeds $10,000, the individual can be declared bankrupt and lose their home.”

Care Consumer Law, a community legal centre serving Canberra and the wider ACT region, hears similar cases every week. The organisation has already submitted reform proposals to the Committee, including calls for hardship applications not to be unfairly rejected and for written explanations when payment plans are denied. They are also advocating for third-party mediation when owners are unable to pay.

The committee’s inquiry into strata management practices is still ongoing, and a report date has not yet been announced.