Am I liable for maintenance fees on my condo after bankruptcy? 14 Answers as of January 20, 2011

My husband and I filed Chapter 7 in October of 2009, we included the property in the Bankruptcy. We moved out of the property before even filing. Now, the attorney for the Condo is taking us to court because they say we owe maintenance fees etc. on the home. The property was not foreclosed on until September of 2010. But we had nothing to do with it anymore and I thought we would not be held responsible for anything associated with the property since it was included in the Bankruptcy. Can they take me to court for the maintenance fees from October of 2009 until September 2010? Or is the bank responsible for those costs?

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The Shakoori Law Group
The Shakoori Law Group | Rachelle Shakoori
Typically, you are still responsible for any post filing debt such as Home Owners Association fees, etc. Since, the bank had not taken over the property yet, its still your property until the final foreclosure takes place.

I highly recommend that you retain an experienced bankruptcy attorney in your jurisdiction to guide you through the complexities of bankruptcy law and procedure
Answer Applies to: California
Replied: 1/20/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
You should talk to the attorney that represented you in the bankruptcy.
Answer Applies to: South Dakota
Replied: 1/20/2011
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
If you owed Maintenance fees before you filed bankruptcy and listed the homeowners association as a creditor in the appropriate schedule, the debt should be dischargeable. You would be liable for any maintenance fees after you filed bankruptcy until the bank takes title to the property through foreclosure. Consult with your bankruptcy attorney.
Answer Applies to: Illinois
Replied: 1/20/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Filing a Chapter 7 ends your personal responsibility for the HOA dues, but leaves intact the lien on the property itself as to the pre-Petition dues. As for the post-petition dues, they are your personal obligation until title transfers at the completion of the foreclosure process. You should try to negotiate a settlement of the fees. You should also consult with a lawyer who is expert on condominium law.
Answer Applies to: California
Replied: 1/20/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You are responsible for the post petition HOA fees. For this reason I advise my clients to stay in the condo until the foreclosure, and then file bankruptcy. Sometimes it is not possible to wait that long.
Answer Applies to: California
Replied: 1/20/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    Per the Bankruptcy code you are responsible for it until the foreclosure.
    Answer Applies to: New Hampshire
    Replied: 1/19/2011
    William C. Gosnell, Attorney at Law
    William C. Gosnell, Attorney at Law | William C. Gosnell
    No Contact your Bankruptcy attorney.
    Answer Applies to: Tennessee
    Replied: 1/19/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    HOA dues are covenants running with the land and you are liable as they are not dischargeable.
    Answer Applies to: California
    Replied: 1/19/2011
    Sussman & Associates
    Sussman & Associates | Mitchell Sussman
    The BK should discharge any of your debt to the HOA.
    Answer Applies to: California
    Replied: 1/19/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    This is an unclear issue. Debts before you file were discharged. However, you are being sued for a debt after you filed. Although you probably surrendered the property in the bankruptcy case the HO Association may be able to collect from you. There are some court opinions that say that surrendering the property in the bankruptcy case and giving up possession is sufficient to eliminate liability for the HO fees after filing the bankruptcy case but it is not a clear issue. You may have to reopen the bankruptcy case and have the bankruptcy court decide the issue. Hopefully you had a lawyer that represented you in the bankruptcy case that will handle that issue in the bankruptcy case. The judge in State Court can also decide that issue but State judges do not know much about bankruptcy and you will have to have a lawyer represent you in the Superior Court case. Also, it is very likely that the HO Association was paid by the bank before the foreclosure so that they could sell the property clear of the HO Association lien for its fees. If not, the Association could have been paid when the bank sold the property after the foreclosure if it has been sold by now. Sometimes the HO Association gets paid and still try to collect from you so may have to do what is called discovery in the Superior Court case or in the bankruptcy case if you reopen it to have the issue determined by the bankruptcy court. If the bank paid the HO Association then you owe nothing since you are free of any debt to the bank. If the HO Association had proper notice that you were surrendering the property and moving out then they might have to explain to the bankruptcy court why they did not foreclose on their lien. Of course, there is always the choice of trying to settle the case with the H.O Association since the situation is not clear and who knows who will eventually win and how much will have to be spent on the case.
    Answer Applies to: California
    Replied: 1/19/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    HOA dues (otherwise known as maintenance fees) are subject to collection after filing for bankruptcy as long as the property remains legally yours. Meaning, possible for the creditor to collect said fees even after you filed (until the property legally belongs to someone else, i.e., foreclosed).
    Answer Applies to: California
    Replied: 1/19/2011
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