QUESTION
Can homeowner’s association fees be discharged through foreclosure?
Asked on Jun 22nd, 2014 on Bankruptcy - Connecticut
More details to this question:
My home was foreclosed in April 2012. I have converted Chapter 13 to Chapter 7 due to my divorce. Now the homeowner’s association sued me because I owe them money. My bankruptcy lawyer told me they cannot sue me and sent them a letter. But the homeowner’s association did not take it under consideration. My question is: After bankruptcy and foreclosure, is the action of the homeowner’s association legal or illegal to collect my debt?
15 ANSWERS
Generally, no. The homeowner will owe the fees as long as they are the owner of the property. The fees are dischargeable, if incurred prior to the filing or conversion.
Answered on Jul 01st, 2014 at 5:38 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
In NJ: Yes, they can collect on post bankruptcy petition charges. Not for the pre-petition.
Answered on Jun 26th, 2014 at 9:47 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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In California, homeowner's assessments both run with the land (like property tax) and are personal obligations. The HOA obligations that exist prior to the filing of a petition are dischargable. The HOA obligations that accrue after the filing are not discharged. Outside of bankruptcy, HOA obligations prior to a foreclosure are the obligations of the homeowner. After foreclosure, any HOA obligation that accrues is the obligation of the party then on title. You should talk to your attorney about what is happening.
Answered on Jun 26th, 2014 at 9:47 PM
Regulatory Attorney serving Spokane, WA
Partner at
Deissner Law Office, P.C.
The association fees are a lien on the property and if you are keeping the property the fees will have to be paid. If the home was foreclosed and you are walking away then the association fees are dischargeable. If they sued you during the automatic stay that is a violation. Either way the fees should be discharged if they were incurred prior to conversion to Ch. 7.
Answered on Jun 26th, 2014 at 9:47 PM
2 Awards
Pre-bankruptcy filing HOAs are discharged. However, post bankruptcy filing HOAs are not.
Answered on Jun 26th, 2014 at 9:47 PM
If you filed bankruptcy and got your discharge, the discharge only applied to the homeowner's association fees that were due as of the date you filed the bankruptcy. Whatever fees were incurred after the date of filing were not discharged, and the association can sue you for those fees.
Answered on Jun 26th, 2014 at 9:38 PM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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The Law Offices of Peter M. Lively
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It depends upon whether the CC&Rs are recorded with the county recorder's office ahead of the secured lender.
Answered on Jun 26th, 2014 at 9:38 PM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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If the homeowner's association lien was included in the Chapter 7 - and you were granted a discharge, the debt should be discharged. Answer the collection action with a copy of the discharge and the schedule that listed the debt. I'm sure your bankruptcy attorney would prepare that answer for you.
Answered on Jun 26th, 2014 at 9:38 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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I'm assuming that all the homeowners association fees were incurred before you filed your bankruptcy. In that case, it is a breach of the discharge injunction for the homeowners association to harass you about a discharged debt. If they continue to harass you or sue you, you need to have your lawyer file a motion for sanctions with the bankruptcy court.
Answered on Jun 26th, 2014 at 9:38 PM
Timing is everything. Your Chapter 7 discharged only the HOA dues owed at the time you converted from Chapter 13 to Chapter 7. The discharge does not encompass HOA dues that accumulated after your case was converted if you continued to be the legal owner of the property.
Answered on Jun 26th, 2014 at 9:38 PM
Foreclosure will prevent an HOA from securing back dues as a lien on the property and foreclosing on its own. It does not extinguish personal liability for the dues. Assuming you no longer owned the home after the date of filing bankruptcy then the dues will be discharged in your Chapter 7 as an unsecured debt.
Answered on Jun 26th, 2014 at 9:38 PM
Deborah F. Bowinski
You remain obligated for any HOA fees that were incurred after the filing date of your bankruptcy case. If the conversion to chapter 7 took place after the foreclosure then your debt should have been part of your discharge. If the foreclosure took place after the case was converted then you still owe fees from the bankruptcy filing date up until the time the property was transferred out of your name.
Answered on Jun 26th, 2014 at 9:38 PM
You are liable for the HOA dues from the date you converted your Chapter 13 to a Chapter 7, up until the home is foreclosed upon. Once the home is foreclosed upon, the successful bidder at the foreclosure sale is the new owner and liable for the HOA dues thereafter.
Answered on Jun 26th, 2014 at 9:04 PM
Probate Attorney serving Friendswood, TX
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Law Office of Melissa A. Botting
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If your homeowner's association received proper notice of the bankruptcy, they may be discharged. They were secured by the house. If the house has been foreclosed, they have lost the security and are now unsecured. They will be treated the same as all your other unsecured creditors in bankruptcy. If you have been sued, file a Suggestion of Bankruptcy with the court where the suit was filed.
Answered on Jun 26th, 2014 at 1:30 PM
If you are currently protected by the automatic stay that occurs when you file bankruptcy, the homeowners association is taking illegal action in attempting to collect the debt particularly after having been informed by your attorney. As a result you are entitled to damages if you pursue the Association for their illegal collection methods. There are federal laws that protect you as well as the State CCPA law. I would advise you to contact a consumer lawyer to pursue the homeowners association. Please contact us if we can be of any help.
Answered on Jun 26th, 2014 at 6:58 AM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals