QUESTION
How do I respond to a lawsuit against me regarding HOA fees after bankruptcy?
Asked on Aug 26th, 2011 on Bankruptcy - Michigan
More details to this question:
I filed BK on property that had HOA fees and now I am being sued for HOA fees assessed after my BK. I was served form SU. How do I respond to the SUM-100?
10 ANSWERS
Daniel James Wilson
This is a huge problem. Pre-petition HOA fees are discharged, but post-petition HOA fees are not. The dues remain your responsibility until the house is actually sold at foreclosure. Are you still in the house? If so, you can stay there until foreclosure sale and pay HOA dues. Consider it cheap rent. I have heard of debtors renting property month to month to pay the dues, but that makes me nervous. If you are not in the house you probably will have to pay post-petition dues.
Answered on Aug 31st, 2011 at 11:51 AM
William C. Gosnell
You are not liable if you gave notice to them in your chapter 7 proceeding.
Answered on Aug 29th, 2011 at 12:47 PM
Glen Edward Ashman
As I am sure your lawyer told you, you are responsible for postfiling HOA fees until and unless the lender actually forecloses.
Answered on Aug 29th, 2011 at 7:46 AM
Family Law Attorney serving Indio, CA
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Law Office of Xochitl A. Quezada
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Bankruptcy does eliminate the debt you owed up to the date of filing. After that point, you are liable for the HOA fees. You can try to work out a payment plan with opposing counsel. In the event that judgment is entered against you, they can garnish your wages. I suggest contacting them and working out a resolution.
Answered on Aug 29th, 2011 at 6:15 AM
2 Awards
This is a summons. You have been sued and have 20 days to file an answer to the complaint, which should have accompanied the summons. If you have no defense then there is no point in responding. I recommend contacting the attorney on the pleadings and trying to set up a payment plan. You are liable for dues accruing since the filing date through foreclosure sale or other title transfer. You are not liable for pre bankruptcy filing delinquencies.
Answered on Aug 27th, 2011 at 10:09 AM
You are liable for the HOA fees the accrued post bankruptcy filing. How do you respond? Well that depends on the overall strategy. You need a lawyer.
Answered on Aug 27th, 2011 at 9:42 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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There are provisions in the bankruptcy code that give special rights to Homeowner's Associations. HOA dues incurred after filing bankruptcy are owed and failure to pay can result in a lawsuit. When a property is foreclosed the HOA dues are no longer owed by you.
Answered on Aug 27th, 2011 at 9:38 AM
While prepetition HOA dues are generally dischargeable in chapter 7, postpetition HOA dues and assessments are not dischargeable. Bankruptcy Code Section 523(a)(16) makes non-dischargeable any debt, "for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor's interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot, but nothing in this paragraph shall except from discharge the debt of a debtor for a membership association fee or assessment for a period arising before entry of the order for relief in a pending or subsequent bankruptcy case." You should speak to an attorney immediately about the complaint you were served with.
Answered on Aug 27th, 2011 at 9:17 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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You owe HOA fees from the date of filing until the house is foreclosed.
Answered on Aug 27th, 2011 at 9:14 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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You owe the HOA fees after bankruptcy regardless of your bankruptcy. Pay them.
Answered on Aug 27th, 2011 at 9:01 AM