QUESTION
If I file chpt 13, will that stop HOA from foreclosing on my house.
Asked on Jul 16th, 2013 on Bankruptcy - Texas
More details to this question:
I am in arrears for 8200.00 dollars that I owe on my homeowners association fee's, They refuse to workout a payment plan with me and have threatened to foreclose on my home. can I file chapter 13 to stop them from selling my home,
1 ANSWER
J. Thomas Black
Yes, stopping foreclosures of houses by homeowner's associations is a common purpose for filing chapter 13. Get my free special report on What You Need to Stop Your Texas Foreclosure Now!
Once a chapter 13 is filed, an "automatic stay" or federal court injunction stops the HOA from continuing with the foreclosure, at least as long as you comply with the plan. Your attorney should make sure that the HOA is promptly and properly notified of the filing of the chapter 13 to be sure that the foreclosure is stopped.
The amount that you owe the HOA is typically paid as a secured claim through the chapter 13 plan with some interest, over the 36-60 month period of the plan, which usually makes it very affordable. Consult an experienced bankruptcy attorney that actively handles chapter 13 cases in your area.
Answered on Jul 22nd, 2013 at 4:36 PM