Past HOA Dues being discharged due to Bankruptcy Chapter 7 vs. 13

Started by FionaC • 4 replies • 3107 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

FionaC (California)
Posts: 212

Posted:

I was speaking to a neighbor friend of mine. She disclosed to me since she lost her higher salaried job a year and half ago it's been a hard go at it. Her dues are months behind yet she is still making some payments. ( partial vs non at all )

She is behind in payments and having serious financial issues. She is seeing a lawyer to file BK. Chapter 7 is total discharge of all debts.. that could be including her past HOA dues. ( about 2500 dollars ) or she may file a Chapter 13 which will allow her if she is able to arrange set payment through the courts.

How does this work if her debt is discharged and she still lives here? Her mortgage is not behind and in fact on time.. ( which is good news I assume. Same as her car payemnt insurances etc.. )

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Fiona:

Per your question: How does this work if her debt is discharged and she still lives here?

I believe she would start with a clean slate and need to pay her HOA fees from date of discharge forward. She would not be able to file bankruptcy again for at least 7 years is what I believe the statute of limitations currently still states. Also, this is only if the bankruptcy court allows for her to discharge her HOA fees, if she is going to keep the home they might insist that as part of keeping the home she must become current on her HOA fees.

Your HOA may want to check with an attorney to see if there is any documentation you need to file to protect certain rights.

GlenL (Ohio)
Posts: 5,491

Posted:

Not from the date of discharge but from the date of filing. At that time the HOA will need to open a second account for this person going forward. The HOA would have to suspend all enforcement actions against the past due amount while the bankruptcy is pending; so the HOA should file a lien ASAP, if they don't have one in place already but she would be responsible for all new charges from the date of filing. If the HOA doesn't have a Management Company they should contact the HOA attorney on how to respond to the filing and how to treat the account.

Studies show that 5 out of 4 people have problems with fractions

FionaC (California)
Posts: 212

Posted:

NO lein was ever filed. Our HOA still has opened delinquents from years ago when I was serving last year! The Atty doest NOT move fast and in fact, takes months to act upon an approved action by the atty.... MOre than likely a lein will not happen. She isn't even in collections yet. MOST of rather all of our BK's who filed already lost their home... but this situation is very different.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Atty doest NOT move fast and in fact, takes months to act upon an approved action by the atty.... ....She isn't even in collections yet.

You can file a lien anytime. Hire a different attorney just to file the lien. They can do it in 1 day or you can do it yourself. Its really easy.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here