Can my creditor challenge my bankruptcy discharge? 17 Answers as of June 16, 2011

I have a lien from a collection from not paying my condo fees & special assessment fees. Now that I filed bankruptcy, can the association/creditor legally object/challenge the discharge?

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Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
They can object, though they likely will not. Even filing Bankruptcy the lien will not go away, and if you intend on keeping your real estate you will have to address payment of these fees.
Answer Applies to: New Hampshire
Replied: 6/16/2011
Gresham Family & Bankruptcy Law
Gresham Family & Bankruptcy Law | Lillian Suelzle Watson
It depends on the type of debt. If it is secured the lender can still take the property. If it is for a utility or homeowners association, they can collect after the bankruptcy and before foreclosure. If it is a for government debt it is not discharged. So it depends. Good luck.
Answer Applies to: Oregon
Replied: 6/13/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Without knowing specifics, generally yes a Creditor can object to your discharge if they have a valid reason to.
Answer Applies to: Washington
Replied: 6/13/2011
Bankruptcy Law Office of Robert Weed
Bankruptcy Law Office of Robert Weed | Robert Weed
Well they can object. But they would have to show that it's taxes or child support or you lied in writing on your credit application; none of that is likely to apply. Two things to remember after you file your case, the association after that is an after-bankruptcy debt and you have to pay as long as you own the place. Second, the line probably survives a Chapter 7 bankruptcy and would still be on the house when/if you go to sell.
Answer Applies to: Virginia
Replied: 6/13/2011
Saedi Law Group
Saedi Law Group | Lorena Saedi
A creditor can file an adversary proceeding in your case objecting the discharge of a debt. I would suggest that you meet with a bankruptcy attorney in your area to review the possible arguments the creditor could make not to discharge your debt.
Answer Applies to: Georgia
Replied: 6/13/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    There are reasons to challenge a discharge such as fraud and abuse but there must be something illegal or improper done by you that would give the court grounds to punish you by denying you a discharge. If you are honest in your petition and disclose everything and have competent legal representation you have nothing to fear.
    Answer Applies to: California
    Replied: 6/10/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Only if the debt was obtained by fraud or a false financial statement, or if you committed fraud by stating false information or failing to state correct information in your bankruptcy papers. In many states, the condo fees which come due after you file are collectible from you as they are not discharged in the bankruptcy.
    Answer Applies to: California
    Replied: 6/10/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Any creditor can object to the discharge of their debt if they have grounds for doing so. The grounds are set forth in 11 USC 523 (and 1328) and includes debts incurred by fraud, willful and malicious injury, certain taxes, student loans, domestic support obligations, and several more. I'm not sure what basis your HOA can object, but I don't have all the facts. They do have a lien, however, so the lien will remain against your property regardless of what happens in the bankruptcy case.
    Answer Applies to: California
    Replied: 6/10/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    No they cannot usually contest your discharge. However, only pre filing hoa dues are dischargeable. Post filing hoa dues are not dischargeable. In other words if you still own the property and the bank has not foreclosed on it you will owe hoa dues from the date of your filing until the bank takes the property back. This is one of the very few exceptions in bk law.
    Answer Applies to: California
    Replied: 6/10/2011
    Ellahie & Farooqui LLP
    Ellahie & Farooqui LLP | Javed Ellahie
    *Challenge by Creditor.* While theoretically any creditor can challenge your bankruptcy discharge, the law will not listen to a creditor challenge unless there are grounds under bankruptcy law to make such a challenge. These are spelled out in 11 USC 523 and include obtaining credit by fraud, causing willful, malicious injury. Some debts are by law not dischargeable. These related to support obligations, payroll tax obligations and recent income tax obligations. *Condo liens* Bankruptcy Chapter 7 will wipe out condo debts due prior to filing bk. If they have recorded a lien, that lien may survive the bankruptcy and you will have to pay it, if you ever sell the home or refinance it. Condo dues coming due after the filing of the Chapter 7 do not get wiped out.
    Answer Applies to: California
    Replied: 6/10/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    HOA dues can survive BK if the property is still legally yours.
    Answer Applies to: California
    Replied: 6/10/2011
    Daniel Hoarfrost, Attorney at Law
    Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
    The association can't object to discharge unless they allege some kind of fraud. However, association dues and fees are "secured" with a lien on your condo.The discharge doesn't remove liens.If you intend to keep your condo, you'll have to find some way to pay their charges.
    Answer Applies to: Oregon
    Replied: 6/10/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Creditors can object to some debts being discharged. HOA fees do not fall into that category.
    Answer Applies to: California
    Replied: 6/10/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    This is a question you should be discussing with your bankruptcy lawyer. If you made the very foolish and dangerous mistake of filing without a lawyer, your question shows how far over your head you are. Get a lawyer. Even if the debt is dischargeable, bankruptcy does NOT erase certain liens (and other liens cannot be eliminated without the filing of a proper motion). Also, fees that accrue after filing are unaffected by the case.
    Answer Applies to: Georgia
    Replied: 6/10/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    I think not. Those fees are dischargeable. You should even be able to get the lien released.
    Answer Applies to: Virginia
    Replied: 6/10/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    There are limited grounds to objecting to discharge. This is not to be confused with an adversary proceeding to determine dischareability of a given debt. Generally, a debt must have been incurred by fraud to be nondischargeable. As to a line filed, there is a procedure to remove a judgment lien or non-purchase, non-possessory line under section 522f of the bankruptcy code. Consult a lawyer so you do not give up your rights.
    Answer Applies to: California
    Replied: 6/10/2011
    Law Office of Eric Ridley
    Law Office of Eric Ridley | Eric Ridley
    Yes, any creditor can challenge the discharge after you file. They file what's called an adversary proceeding, which is a mini-trial, during which they try to prove that their debt should not be included in the bankruptcy estate.
    Answer Applies to: California
    Replied: 6/10/2011
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