Can you discharge a HOA lien foreclosure through bankruptcy? Or should you file prior to the lien foreclosure?

If you are planning to file a chapter 7 bankruptcy, it is always better to do so before a foreclosure. Once a foreclosure happens they are tax ramifications that cannot be avoided within bankruptcy. But if you file for chapter 7 bankruptcy prior to the house actually being foreclosed and sold at auction you absolving yourself of repaying the debt and will not incur IRS tax ramifications on any deficiency between the foreclosure sale price and the amount still owed on the mortgage. You may use a chapter 13 bankruptcy to stop a foreclosure and also give you time to pay back what is owed and clear the lien. Or you may actually be able to strip the lien with a motion to avoid lien within bankruptcy. There are many options and you should contact a qualified bankruptcy attorney to file bankruptcy for you prior to foreclosure. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147