Can I bankrupt my past due HOA fees?

Asked almost 3 years ago - Grass Valley, CA

I was unemplyed for a year and owe my HOA collection ageny $10,000. They were going to foreclose my property, but now I have another job. The HOA collection agency wants me to sign a contract to repay the past due with a very high interest rate and make my regular monthly HOA payments on top of that. I am thinking of bankrupting my credit card debt. QUESTION... If I sign a repayment contract with the HOA Collectors, would I be able to breach the contract LATER and just bankrupt the past due? If I sign the contract they will stop the forecloseure. I know that a BK will also stop a foreclosure.

Attorney answers (3)

  1. Hamid Jabbar

    Contributor Level 13

    3

    Lawyers agree

    1

    Best Answer
    chosen by asker

    Answered . Filing a Chapter 7 bankruptcy would eliminate your personal liability on the past due HOA but it cannot remove the lien. Thus, in many instances it does little good for people who want to keep their properties because the HOA retains its rights under state law to foreclose even though it cannot sue you personally post-bankruptcy discharge.

    This answer is for informational purposes only. This answer does not constitute legal advice, create an attorney-... more
  2. Bruce Allan Wilson

    Contributor Level 15

    3

    Lawyers agree

    1

    Answered . You can file BK to discharge HOA dues prior to filing, but not HOA dues incurred after filing.

    Typically, HOA dues are secured by the property. Thus, BK removes the debt as to you personally, but not as to the property.

    It could be possible to strip of the lien in Chapter 13, but more info. is needed to address that issue.

    Contact a good BK attorney in your area.

    BW

  3. John Gerth Merna

    Pro

    Contributor Level 15

    2

    Lawyers agree

    1

    Answered . Hamid's answer is not only correct but covers the topic very well. I would only add that if you are considering bankruptcy and retaining your real estate you might want to discuss with your bankruptcy attorney whether Chapter 13 provides you any advantages. One advantage may be reducing the interest rate on the repayment of past HOA fees. However, that advantage alone may not warrant you filing a Chapter 13 given the statistically low percentage of people that complete them. Discuss it with your bankruptcy attorney before you make a decision.

    This answer in no way creates an attorney-client relationship. The answer is not a complete answer and requires... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

29,219 answers this week

3,162 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

29,219 answers this week

3,162 attorneys answering