Can an HOA lien be stopped if chapter 13 bankruptcy is filed? 12 Answers as of January 19, 2011

My question is, if my condo is upside down and lost my job and now on social security, mortgage payments are current and I want to stay in my home, will a Chapter 13bankruptcy stop the HOA lien of about $5,000?

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Christopher Legal Group
Christopher Legal Group | Shawn Christopher
What do you mean by stop the lien? The lien exists, if you want to retain the property, you will likely have to pay it. If you are upside-down, you may want to consider surrendering the property. In addition, a chapter 13 requires a debtor to have regular and adequate income to pay their secured debts, living expenses, and a plan payment. If you do not have enough income, then you may not be able to receive a confirmed chapter 13 plan.

If you still want to retain the condo, and have adequate income, then you can use a chapter 13 to make payments on the HOA account.
Answer Applies to: Nevada
Replied: 1/19/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
If the condo is upside down by more than the value of the HOA lien, then it can be "lien stripped" in a Chapter 13 and becomes an unsecured obligation treated equally with the other unsecured obligations. However, after the filing of the Petition you will have to keep the monthly HOA dues current, as well as make payments on the other encumbrances on the condo and make your plan payments. If there is any equity beyond the mortgages on the property then, as a practical matter lien stripping will not work, and the HOA can obtain relief from stay and seek to sell the property.
Answer Applies to: California
Replied: 1/18/2011
Law Office of Aaron Nielson
Law Office of Aaron Nielson | Aaron Nielson
You can propose a chapter 13 payment plan that will cover the past due HOA fees.
Answer Applies to: Washington
Replied: 1/17/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
I think you mean can you remove the HOA lien in a Chapter 13 case? That depends in part on the laws of your state and on the terms and conditions of your HOA agreement. I don't believe HOA liens can be removed, but I am not sure.
Answer Applies to: California
Replied: 1/17/2011
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
A Chapter 13 filing gives rise to the automatic stay 11 U.S.C. Section 362. This stops any lien claimant from foreclosing unless and until the Court grants a Motion for Relief from Stay or the case is dismissed. If you confirm a Chapter 13 plan, this will include a provision for taking care of the HOA lien.
Answer Applies to: California
Replied: 1/17/2011
    Gus Johnson Attorney at Law
    Gus Johnson Attorney at Law | Gus Johnson
    You probably won't be able to discharge the HOA assessments, but you could probably structure repay within a chap. 13.
    Answer Applies to: South Dakota
    Replied: 1/17/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Yes and you will have to pay the H.O. Association lien in the Chapter 13 Plan over a period of up to five years depending on your situation.
    Answer Applies to: California
    Replied: 1/17/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    No, the HOA is entitled to the lien. That will have to be paid in the Chapter 13 case.
    Answer Applies to: California
    Replied: 1/17/2011
    Stuart Jon Bierman  Attorney at Law
    Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
    A chapter 13 will not "stop" the HOA lien but it will give you more time to pay it off. For example, if it would be beneficial to you, a payment schedule can be set up wherein you would be paying off the lien over a 60 month period. Still, it is usually not worth it to file for a 13 if your only or main debt is only $5,000.00. It might be better to work out a payment schedule with the HOA or creditors instead of paying attorney fees to file for a 13.
    Answer Applies to: New Jersey
    Replied: 1/17/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    It will allow for it to be paid back over time in the plan you present to the court.
    Answer Applies to: New Hampshire
    Replied: 1/17/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    My initial reaction is that you have jumped to quickly to Chapter 13. Chapter 7 might do what you want. There might also be some non-bankruptcy solutions. Maybe doing nothing would work, depending on what they are doing to collect. Your lawyer would need to know w hole lot of detail about you to work out the best plan.
    Answer Applies to: Virginia
    Replied: 1/17/2011
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