QUESTION
Can the wife wipe out this HOA debt and settle the case with a BK filing?
Asked on Jan 19th, 2013 on Bankruptcy - Florida
More details to this question:
HOA debt is $24K and is listed under both wife & husband's name. Papers were just served for wife but not husband although husband’s name is on the paperwork. The thought is only one person would suffer the BK on their record rather than both parties. No other debt or assets owned by either party. Both have good jobs but that's it.
7 ANSWERS
First, let me ask. By HOA debt are you referring to HomeOwners Association debt. If yes, the wife can get rid of her obligation to repay this debt by filing bankruptcy. It will also halt the lawsuit through the operation of the automatic stay. The creditor can ask for a lift of the stay and I would need more information about this matter to advise on their likelihood of success. If they are successful, their recourse would be foreclosure. Secondly, this would not discharge the husband's obligation and most likely would simply result in the filing of a new lawsuit naming him. This would lead to him filing (and paying separate fees) at a later time. All in all, if they want to file, they should file together.
Answered on Jan 24th, 2013 at 9:18 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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If you are in NC and the HOA served you with Court papers, this means they have a lien against you home and you can't wipe it out. You need to consider a Chapter 13 to pay it.
Answered on Jan 23rd, 2013 at 1:51 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The laws dealing with HOA liens is different state to state. You really need to talk to your bankruptcy attorney.
Answered on Jan 23rd, 2013 at 1:50 PM
What isn't clear here is whether you still own the property inside the HOA. Filing bankruptcy will not remove the HOA debt because this debt attaches to your property and affect the title. Like the tax man, the HOA must get paid first before you sell the property.
Answered on Jan 23rd, 2013 at 1:50 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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That is unsecured priority debt and cannot be discharged. YOu may not have to repay entire amount but it must be re-paid. If you both make good money, you may not qualify for bankruptcy.
Answered on Jan 23rd, 2013 at 1:48 PM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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If the HOA has a lien, then a chapter 7 filing cannot remove the obligation. If only one person files bankruptcy, it only prevents the HOA from collecting from that person. The other spouse is still obligated to pay the debt.
Answered on Jan 23rd, 2013 at 1:48 PM
If the debt is owed by both spouses and only one spouse files for bankruptcy, the debt will be extinguished as to that one spouse however it will continue against the non-filing spouse. Please keep in mind that each case is different and a complete evaluation of your particular situation would be necessary to properly determine who should file and the effect of filing.
Answered on Jan 23rd, 2013 at 1:47 PM