QUESTION
Are Home Owners Association HOA dues typically discharged in bankruptcy? How?
Asked on Aug 10th, 2015 on Bankruptcy - California
More details to this question:
If bankruptcy is declared, are HOA dues discharged and moving forward must the HOA dues be paid after declaring bankruptcy?
5 ANSWERS
Yes but not the ones post filing for bankruptcy.
Answered on Aug 11th, 2015 at 5:59 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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HOA due are dischargeable unless they have filed a lien. If they have filed a lien, they're usually dischargeable in Chapter 13 but not in Chapter 7. As long as you're still the owner of the home, you're liable for the HOA dues after the bankruptcy.
Answered on Aug 10th, 2015 at 7:37 PM
All the dues owed on the date of filing are subject to bankruptcy discharge, but if they obtained a lien on your property, then filing bankruptcy alone does not remove the lien. You remain liable for HOA dues accruing after you file bankruptcy until you get the property out of your name.
Answered on Aug 10th, 2015 at 5:44 PM
Typically, HOA dues are secured, and like any secured debt, while it can be discharged in bankruptcy, if you do not pay, you will lose the property.
Answered on Aug 10th, 2015 at 3:57 PM
HOA fees are discharged in bankruptcy as to personal responsibility, but they have no effect on liens on real property that are placed before the BK filing. Post-filing fees are not discharged and will be both a personal debt as well as a potential lien once the debt exceeds four figures.
Answered on Aug 10th, 2015 at 2:55 PM