Can homeowner’s association fees be discharged through foreclosure? 23 Answers as of July 01, 2014

My home was foreclosed in April 2012. I have converted Chapter 13 to Chapter 7 due to my divorce. Now the homeowner’s association sued me because I owe them money. My bankruptcy lawyer told me they cannot sue me and sent them a letter. But the homeowner’s association did not take it under consideration. My question is: After bankruptcy and foreclosure, is the action of the homeowner’s association legal or illegal to collect my debt?

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Barnhart Law Office
Barnhart Law Office | Bruce C Barnhart
Generally, no. The homeowner will owe the fees as long as they are the owner of the property. The fees are dischargeable, if incurred prior to the filing or conversion.
Answer Applies to: Nebraska
Replied: 7/1/2014
GARCIA & GONZALES, P.C. | Richard N. Gonzales
You are liable for the HOA dues from the date you converted your Chapter 13 to a Chapter 7, up until the home is foreclosed upon. Once the home is foreclosed upon, the successful bidder at the foreclosure sale is the new owner and liable for the HOA dues thereafter.
Answer Applies to: Colorado
Replied: 6/26/2014
In general association dues incurred prior to a bankruptcy filing are discharged. Dues after the filing are not discharged until the title to the property passes from the owner to the mortgage company. If your property was foreclosed then a bankruptcy was filed then all of the dues were discharged in the bankruptcy. If you filed a chapter 13 bankruptcy before April 2012? then the dues owing from the filing date to April 2012 should be dischargeable.
Answer Applies to: Minnesota
Replied: 6/26/2014
Stephens Gourley & Bywater | David A. Stephens
The pre-petition HOA fees may be dischargeable, although they may be a secured claim. The post-petition HOA fees are not dischargeble.
Answer Applies to: Nevada
Replied: 6/26/2014
Law Office of Melissa Botting | Melissa Botting
If your homeowner's association received proper notice of the bankruptcy, they may be discharged. They were secured by the house. If the house has been foreclosed, they have lost the security and are now unsecured. They will be treated the same as all your other unsecured creditors in bankruptcy. If you have been sued, file a Suggestion of Bankruptcy with the court where the suit was filed.
Answer Applies to: Texas
Replied: 6/26/2014
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    If you are currently protected by the automatic stay that occurs when you file bankruptcy, the homeowners association is taking illegal action in attempting to collect the debt particularly after having been informed by your attorney. As a result you are entitled to damages if you pursue the Association for their illegal collection methods. There are federal laws that protect you as well as the State CCPA law. I would advise you to contact a consumer lawyer to pursue the homeowners association. Please contact us if we can be of any help.
    Answer Applies to: Connecticut
    Replied: 6/26/2014
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    If the homeowner's association lien was included in the Chapter 7 - and you were granted a discharge, the debt should be discharged. Answer the collection action with a copy of the discharge and the schedule that listed the debt. I'm sure your bankruptcy attorney would prepare that answer for you.
    Answer Applies to: Kentucky
    Replied: 6/26/2014
    Law Office of Peter M. Lively
    Law Office of Peter M. Lively | Peter M. Lively
    It depends upon whether the CC&Rs are recorded with the county recorder's office ahead of the secured lender.
    Answer Applies to: California
    Replied: 6/26/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Foreclosure will prevent an HOA from securing back dues as a lien on the property and foreclosing on its own. It does not extinguish personal liability for the dues. Assuming you no longer owned the home after the date of filing bankruptcy then the dues will be discharged in your Chapter 7 as an unsecured debt.
    Answer Applies to: California
    Replied: 6/26/2014
    Ronald K. Nims LLC | Ronald K. Nims
    I'm assuming that all the homeowners association fees were incurred before you filed your bankruptcy. In that case, it is a breach of the discharge injunction for the homeowners association to harass you about a discharged debt. If they continue to harass you or sue you, you need to have your lawyer file a motion for sanctions with the bankruptcy court.
    Answer Applies to: Ohio
    Replied: 6/26/2014
    Portland Bankruptcy Law Group
    Portland Bankruptcy Law Group | Christopher J. Kane
    If you filed bankruptcy and got your discharge, the discharge only applied to the homeowner's association fees that were due as of the date you filed the bankruptcy. Whatever fees were incurred after the date of filing were not discharged, and the association can sue you for those fees.
    Answer Applies to: Oregon
    Replied: 6/26/2014
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    IT depends on the timing if your home was foreclosed and sold prior to your bankruptcy then they cannot come after you, but if you filed your BK and stayed in home without paying HOA dues and then the property was foreclosed they may have a right to hoa dues until the property was sold due to foreclosure.
    Answer Applies to: Florida
    Replied: 6/26/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You remain obligated for any HOA fees that were incurred after the filing date of your bankruptcy case. If the conversion to chapter 7 took place after the foreclosure then your debt should have been part of your discharge. If the foreclosure took place after the case was converted then you still owe fees from the bankruptcy filing date up until the time the property was transferred out of your name.
    Answer Applies to: Colorado
    Replied: 6/26/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Timing is everything. Your Chapter 7 discharged only the HOA dues owed at the time you converted from Chapter 13 to Chapter 7. The discharge does not encompass HOA dues that accumulated after your case was converted if you continued to be the legal owner of the property.
    Answer Applies to: Nevada
    Replied: 6/26/2014
    Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
    It is my understanding that HOA fees incurred prior to a bankruptcy can be discharged, but HOA fees incurred after a bankruptcy and before foreclosure are not discharged and the home owner is liable.
    Answer Applies to: Arkansas
    Replied: 6/26/2014
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    In NJ: Yes, they can collect on post bankruptcy petition charges. Not for the pre-petition.
    Answer Applies to: New Jersey
    Replied: 6/26/2014
    Danville Law Group | Scott Jordan
    You are represented by an attorney and should be asking your attorney these questions. Whether or not the HOA can sue depends on the time period they are demanding payment.
    Answer Applies to: California
    Replied: 6/26/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Pre-bankruptcy filing HOAs are discharged. However, post bankruptcy filing HOAs are not.
    Answer Applies to: Nevada
    Replied: 6/26/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Technically you do owe for post petition HOA fees, (especially if you were living in it or rented it). You chapter 13 plan may have a bearing on this. Some tome the plan provides for treatment such as "surrender in full satisfaction". I just prevailed in a case on similar facts. HOA had to pay my fees. And, I believe the foreclosure may have wiped out the debt depending on what the CC&R's say. Stick with your lawyer.
    Answer Applies to: California
    Replied: 6/26/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    In California, homeowner's assessments both run with the land (like property tax) and are personal obligations. The HOA obligations that exist prior to the filing of a petition are dischargable. The HOA obligations that accrue after the filing are not discharged. Outside of bankruptcy, HOA obligations prior to a foreclosure are the obligations of the homeowner. After foreclosure, any HOA obligation that accrues is the obligation of the party then on title. You should talk to your attorney about what is happening.
    Answer Applies to: California
    Replied: 6/26/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Normally they are paid in a foreclosure sale, but if they have not been paid then they can collect any fees "post petition", but not fees prior to filing the chapter 7.
    Answer Applies to: New York
    Replied: 6/26/2014
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    They cannot collect prepetition homeowner dues, but they can go after you for post-petition dues,, particularly if you are still residing in the condo. Go back to your lawyer and he can handle if there is an ongoing violation of the stay.
    Answer Applies to: Michigan
    Replied: 6/26/2014
    The association fees are a lien on the property and if you are keeping the property the fees will have to be paid. If the home was foreclosed and you are walking away then the association fees are dischargeable. If they sued you during the automatic stay that is a violation. Either way the fees should be discharged if they were incurred prior to conversion to Ch. 7.
    Answer Applies to: Washington
    Replied: 6/26/2014
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