QUESTION

Can a chapter 7 bankruptcy stop a pending hoa violation lawsuit?

Asked on Jul 06th, 2011 on Bankruptcy - California
More details to this question:
We are being sued by our HOA $5000.00 for as they state CC&R violations for not removing our dogs from our residence. We have 2 pits that have not caused any personal property or harm to an individual. They have gotten out of our yard on about 4 occasions and we have been fined and paid the fines. Now they are demanding that we remove them or be fined 500.00 per day. We did not so they are suing. The dogs love and as I stated have not harmed person or property.
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5 ANSWERS

Bankruptcy Decision Attorney serving San Diego, CA at Law Office of Daniel G. Shay
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HOAs are tricky. If not paid or worked out, the HOA can foreclose. A chapter 7 would discharge the debt if you surrender the condo. But if you want to stay there, it must be satisfied.
Answered on Jul 14th, 2011 at 12:25 PM

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You need to understand that HOA's are binding. Pitbulls are by their nature more vicious than a normal breed. Your HOA is within their legal right to ban the ownership of pitbulls within the community. You've violated these rules. Your lawsuit will be stopped temporarily if you file for bankruptcy, but you cannot discharge this debt. HOA fees will follow you. What a bankruptcy will allow you to do is put the debt owed into a 5 year payment plan, but you must get rid of pit bulls if you intend to stay in the property even after paying the fees. If you do not remove the pit bulls I recommend you move and pay off the fees.
Answered on Jul 11th, 2011 at 10:41 AM

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Lawsuits are stayed when a bankruptcy is pending. After the bankruptcy is over if there is ongoing violation of a HOA a lawsuit could be filed.
Answered on Jul 11th, 2011 at 9:57 AM

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Bankruptcy Attorney serving Hayward, CA at Carballo Law Offices
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The bankruptcy will stop the lawsuit temporarily but that is not alone a good reason to file bankruptcy. If you need to file bankruptcy because of debts you cannot honestly pay then the lawsuit will be put on hold until the association asks the bankruptcy court for permission to proceed with the case. The association has the right to enforce its rules and by purchasing the unit and living there you agreed to abide by those rules so eventually the association will be able to force you to get the dogs out. The association fines and charges before you file for bankruptcy are dischargeable debts.
Answered on Jul 08th, 2011 at 7:24 AM

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Family Law Attorney serving El Cajon, CA at Law Offices of Sheryl S. Graf
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Yes. Once your Chapter 7 bankruptcy case is filed, all collection activity, including the pending lawsuit where your homeowners' association is seeking money from you, are automatically stayed (with some limited exceptions which do not seem to apply based on the facts presented).
Answered on Jul 07th, 2011 at 3:11 PM

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