I FILED BANKRUPTCY IN AZ AND THE HOA WANTS ME TO PAY THEM WHAT I OWED BEFORE THE BANKRUPTCY, IS THAT A LEGAL PROCEDURE?

Asked over 2 years ago - Goodyear, AZ

THEY ARE CHARGING ME EVERY PENNY BEFORE THE BANKRUPTCY...AND THEY TOLD THAT THEY WILL FORECLOSE THE HOUSE.

Attorney answers (3)

  1. Stephen M Trezza

    Pro

    Contributor Level 17

    1

    Lawyer agrees

    Answered . All HOA fees due prior to your bankruptcy filing are dischargeable. All HOA fees that accrue post bankruptcy filing but prior to any trustee sale are due and payable.

    This response does not create an attorney client relationship. The information provided here should not be relied... more
  2. Dorothy G Bunce

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . In most states, HOA dues are eligible to be a secured debt. If the HOA recorded a lien on the property before you filed bankruptcy, then they are already secured. And bankruptcy alone doesn't eliminate the security that a creditor has.

    You either pay the debt, remove the lien, or lose the property once the bankruptcy stay ends. It is a fairly complicated situation & you should have hired an attorney to advise you well before today.

    Hope this perspective helps!

  3. Mitchell Paul Goldstein

    Contributor Level 20

    1

    Lawyer agrees

    Answered . The HOA dues owed prior to filing are dischargeable if you received a discharge in bankruptcy. However, if the law makes them secured OR the HOA filed a lien prior to filing AND the lien was not set aside, THEN the lien is still valid and must be paid regardless of the discharge if you want to keep the property.

    In short, check the land records and the state statutes to see if this is a lien. Write to the HOA asking for proof that the debt is still owed despite your discharge. The only way that can happen is if the HOA had a lien before you filed.

    This situation can get more complicated, but getting this information about the status of the debt is the first step.

    Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice.... more

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