Quote:
Posted By JoyceR2 on 05/18/2019 10:02 AM
1- If an owners files bankruptcy is there any legal way to collect unpaid assessments?
Depends on what was included in the bankruptcy.
If the assessments were included and the HOA failed to convince the court to not include them, then the answer is NO. Those assessments (along with late charges, legal expenses to collect, etc.) are written off as bad debt
Quote:
Posted By JoyceR2 on 05/18/2019 10:02 AM
2- Does filing bankruptcy include assessments after the date the bankruptcy if finalized?
Yes and No.
Most Associations have an annual assessment with an option to pay monthly, quarterly, etc..
If the individual included the annual assessment for this year as part of the proceeding, then the Association is out of luck for this years assessments. However, next years (and future years) assessment would be valid.
If the individual only included what they owed and not the entire year, then the monthly payments (expecting this is what you have) going forward after the date of discharge would be valid.
Additionally, if the lien was perfected (filed) prior to filing bankruptcy, you might have avenues. Check with an attorney!
Quote:
Posted By JoyceR2 on 05/18/2019 10:02 AM
3- Assessments are ongoing before & after any bankruptcy. Could this be considered fraud to file & include assessments with the knowledge that they need to continue to pay assessments as long as they own the property?
No.
Assessments, as any other debt, may be included in the petition to the court.
It's up to the individual companies to convince the court not to include what is owed within the discharge.
You will need a copy of the final document for your records.
For more info, see:
When Delinquent Owners File a Bankruptcy – What now? 2018 article from a Virginia attorney
Virginia Bankruptcy Court Addresses Homeowner Association’s Motion for Relief from Automatic Stay 2001 article from Virginia attorney (being an older article, be aware that some things may or may not have changed)
Can I Keep My Home in Bankruptcy if I Am Behind on HOA Dues? from Nolo
HOA Dues in Chapter 13 Bankruptcy from Nolo
Post-Petition HOA Fees in Bankruptcy from a law firm