QUESTION
Do I have to pay home owners association fees after filing for bankruptcy?
Asked on May 03rd, 2011 on Bankruptcy - California
More details to this question:
I was advised not to pay my HOA fee's when the bank said they were going to foreclose. This was after I filed bankruptcy. I still live in the condo and am waiting for foreclosure.Will I have to pay these fee's or will the bank have to?
8 ANSWERS
You are legally obligated to pay all HOA fees that you incur after the filing of your bankruptcy petition. The HOA can sue you personally for these fees, even if you do not intend to keep the house, so long as the fee was incurred after the filing of your bankruptcy petition, but while you still own the home.
Answered on May 17th, 2011 at 9:13 AM
After the bankruptcy discharge, you are still personally liable for HOA fees until the bank takes possession of the home and the deed transfers.
Answered on May 06th, 2011 at 8:51 AM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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Since you are still living in the condo, you are responsible for post-petition HOA fees. The applicable code section is 11 U.S.C.
Answered on May 06th, 2011 at 8:50 AM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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Absolutely yes. The HOA due after bankruptcy is not part of the bankruptcy estate.
Answered on May 05th, 2011 at 9:53 AM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Post-petition HOA fees are not dischargeable. If the HOA records a lien against the property, the bank may satisfy that portion. However, if the HOA gets aggressive regarding collecting the post-petition fees, it may ruin your post-petition credit rating. You may want to pay them as they arise to avoid that harm to your fresh start. After all, if you're living in the condo you presumably are getting some benefit from the ongoing HOA expenses.
Answered on May 04th, 2011 at 3:08 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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There is a specific section of the Bankruptcy Code that makes post-bankrutpcy filing HOA fees not dischargeable. It makes sense since it is a debt acquired after filing for bankruptcy and only pre-filing debts are discharged. However, when the bank gets around to foreclosing they usually pay the HOA fees so that they can sell the property free and clear of liens at the trustee's sale. Since your debt to the bank was discharged in bankruptcy, you do not owe anything to the bank and you then get away with not paying post-bankruptcy filing HOA fees. However, sometimes the HOA sues you before the foreclosure and go after your wages and bank account (after your bankruptcy filing of course). Sometimes the bank pays the HOA fees but the Association tries to collect them from you again. They frequently forget to tell their debt collectors that the bank already paid the fees before the trustee's sale. I think they believe that they can collect the fees from both the bank and the property owner.
Answered on May 04th, 2011 at 11:52 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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There is a special provision in bankruptcy law that favors home owner association dues. They are owed post-petition until foreclosure is completed.
Answered on May 04th, 2011 at 11:38 AM
Bad advice. As long as you occupy the property you are obligated for the HOA dues. In California, HOA dues run with the property and are a personal obligation of the owner. While the pre-petition HOA dues may be discharged in bankruptcy, you are personally liable for the post-petition due during your occupancy of the property.
Answered on May 04th, 2011 at 11:25 AM