What should I do with past HOA dues after discharge? 18 Answers as of July 30, 2011

I am being sued for HOA dues after discharge, between discharge and release of said property. Which in this market was around 8-10 mos. I don't have the $$ and I'm due in court at the end of the month. I was never told by any attorney that I would be liable for these dues. It would have been cheeper for me to stay in the condo till they came and kicked me out and continued to pay HOA then to have paid rent elsewhere. It's been a year and a half since my discharge and I'm not in any better shape then I was with this employment market. Any advice?

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Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
It is unfortunate that no one explained to you that you are liable for HOA dues on property, even if undergoing foreclosure or short sale, until the property is no longer in your name. The best way to handle something like this is to see if you can Deed in Lieu of foreclosure back to the mortgage company. Now that you are in this situation, do not ignore Court actions. While you may not have a defense against the lawsuit, you can explain to the Court that the HOA could put a lien on the property to get the dues and that you filed Bankruptcy and moved out of the house in anticipation of the property being returned to the Bank or sold. It will likely not get you anywhere and you will likely end up with a judgment against you for the fees. Fill out the financial affidavits and get on as small of a payment plan as you can get to resolve this matter and move forward. Good Luck!
Answer Applies to: New Hampshire
Replied: 7/18/2011
Theodore N. Stapleton, PC
Theodore N. Stapleton, PC | Theodore N. Stapleton
Debts arising after the filing of your chapter 7 petition are not discharged so HOA fees accruing after you filed and before the bank forecloses are not discgarged and must be dealt with. Your attorney should have told you that. Please call to schedule a free consultation.
Answer Applies to: Georgia
Replied: 7/18/2011
Tucker Legal Clinic
Tucker Legal Clinic | Samuel Tucker
It seems to me that this depends on the case trustee's action toward the property and your intentions. If you andthe trustee abandoned the property I do not believe you would be liable for the dues.
Answer Applies to: Mississippi
Replied: 7/18/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
The are special provisions in the bankruptcy code that give HOA's rights. The HOA dues after discharge and until the completion of foreclosure are collectible and can be the subject of a lawsuit judgment.
Answer Applies to: California
Replied: 7/18/2011
Law Office of Lynnmarie A. Johnson
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
About all you can do is try to work something out if you lived in the condo. If you had moved out prior to filing there is at least one case that says you aren't liable. You should go back to your attorney and ask them about your specific case.
Answer Applies to: Michigan
Replied: 7/18/2011
    Guardian Law Group PLLC
    Guardian Law Group PLLC | C. David Hester
    The HOA dues should have been included in your debts that were discharged. Contact your attorney and have him take care of it. IF the condo was returned to the lender in the bankruptcy then they are responsible for all HOA dues after the BK was filed.
    Answer Applies to: Utah
    Replied: 7/18/2011
    Ray Fisher Law Offices
    Ray Fisher Law Offices | Ray Fisher
    If they were pre bankruptcy and you did not reaffirm the debt, which you should not have, and they sued you then you need to sue them for sanctions for violating the discharge order and plead discharge in bankruptcy in the suit. If they were post bankruptcy then you may not have a defense. However, so what. You just went through bankruptcy so by definition you are probably judgment proof, so there is not much they can do to you other than get a worthless judgment.
    Answer Applies to: Texas
    Replied: 7/18/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Nothing you can do in bankruptcy. Sorry to hear that you were not informed that the post bankruptcy filing HO dues are not dischargeable. I always tell my clients to pay the fees after filing for bankruptcy or wait to file bankruptcy until after the foreclosure. Many clients don't pay because they hope the bank will pay before the foreclosure to obtain clear title and that often happens. However, it kind of makes sense that bills for services incurred after filing would not go away with the bankruptcy. You could have suspected it since you knew you had to pay for electricity, gas, water and other utilities and your gardener and the cell phone bill, etc. for charges after the bankruptcy filing. The HO dues are for the services provided by the association to maintain the property just like your cable TV bill is for a service and is payable generally monthly and the amount never ends so long as you continue to receive the services (whether or not you decide to vacate the property it is still your property and your property benefits from the services). A real debt, unlike the HO fees which are incurred monthly, is usually a definite amount, like a credit card balance, plus interest and late charges and when you pay that amount owed you are done with the debt forever. You can discharge such specific amount debts in bankruptcy but not new obligations for services after filing the bankruptcy case. Most importantly, your friendly Republican Congress and President decided in 2005 that discharging HO fees after filing for bankruptcy was not going to be allowed.
    Answer Applies to: California
    Replied: 7/18/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    You are liable for post-petition dues. I always tell my clients that in such situations they can stay in the home until the lender actually forecloses, and that can be a number of months. I suspect your lawyer would have advised the same.
    Answer Applies to: Georgia
    Replied: 7/18/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Unfortunately, to the best of my knowledge, you are liable for HOA dues that accrue after your bankruptcy case is filed until you are no longer owner of the property.
    Answer Applies to: California
    Replied: 7/18/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Unfortunately the post petition hoa dues are non dischargeable. (Most attorneys don't know this). So I'm afraid there's not much you can do. You will owe for all post petition dues up to the time the property went back to the bank.
    Answer Applies to: California
    Replied: 7/18/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Too bad you weren't told, because what you describe would have been perfect. You owe HOA dues until the property is no longer in your name. You can try to work out a payment plan with the HOA lawyers and explain you weren't given full information.
    Answer Applies to: Virginia
    Replied: 7/18/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You are correct, you should have stayed in the condo.... Your lawyer should have told you that. I am upset that there are allot of attorneys out there right now charging big bucks for bankruptcy who know NOTHING. They think it is easy money since it look easy to fill out the forms. You could take him or her to court.
    Answer Applies to: California
    Replied: 7/18/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    You have to pay them. They were not a debt that existed when you filed your bk and therefore not discharged.
    Answer Applies to: California
    Replied: 7/16/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    Contact your bankruptcy attorney immediately
    Answer Applies to: Maryland
    Replied: 7/16/2011
    Law Offices of Alexzander C. J. Adams, P.C.
    Law Offices of Alexzander C. J. Adams, P.C. | Alexzander Adams
    You are liable for this debt. Post petition homeowner's dues is specifically allowed in the bankruptcy code.
    Answer Applies to: Oregon
    Replied: 7/16/2011
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