What happens to past due Home Owners Association dues after bankruptcy?

There is a special provision in the Bankruptcy Code about HOAs. The post-filing, pre-foreclosure dues are owed in spite of bankruptcy. That would pertain to a short sale as well.

HOA fees remain a lien against real property.

HOA dues incurred prior to filing bankruptcy are dischargeable.

In many cases the home owners association can file a lien against the property for unpaid dues, which is a claim in the short sale of the home. However, that obligation should normally be dischargeable to the Debtor.

Did you put them in your bankruptcy petition? Where they discharged? You should consult with your prior attorney.

In a Chapter 7 bankruptcy, you cannot discharge fees assessed after your bankruptcy filing date by a membership association for a condominium, housing cooperative, or lot in a homeowner association if you or the trustee have an ownership interest in the condominium, cooperative, or lot. As a practical matter, this means that any fees that become due after you file for Chapter 7 bankruptcy will survive the bankruptcy, but fees you owed prior to filing will be discharged.

Homeowners association fees usually survive a bankruptcy. There are usually non-discharge debts and you will most likely have to pay them back.

You continue to be liable for Home owners association dues that continue after the date your bankruptcy was filed and up until any sale of the property. HOA dues are a new monthly debt, so that is why only those incurred at the time of the bankruptcy are discharged. If the HOA has already sued you and received a Judgment, there may be other issues.

The H.O. dues are a secured debt so the debt remains a lien on the property. The lien of the H.O. Association is superior to the bank's liens for mortgages. However, your personal liability for the dues is discharged in a Chapter 7 for the dues but only for the period before you filed. If you remain in possession of the property then you will owe the dues that become payable after you file. Chapter 7 will eliminate your liability for debts before you file only. Since the lien remains attached to the property for the H.O. dues [you can say that the property itself continues to owe the H.O. dues because it is a charge or lien against the property], the buyer of the property takes the property subject to the debt to the H.O. Association. That is why before there is a foreclosure (trustee's sales) or at the time a short sale closes the H.O. Association is usually paid. Most buyers want clear title and the H.O. Association dues need to be paid before the transfer of the property for the buyer to obtain clear title. Otherwise, the buyer will have to pay the old H.O. dues to obtain title free and clear of the lien from the H.O. Association. In a Chapter 13 the situation is more complex and the association dues unpaid have to be paid in the Chapter 13 Plan unless you surrender the property. You need to contact a bankruptcy attorney since bankruptcy law is highly complex and require competent legal representation to avoid serious difficulties, particularly when dealing with real property issues.