Getting Rid Of HOA Dues By Filing Bankruptcy
A Chapter 7 bankruptcy will eliminate most, if not all, of your debts. Unfortunately, there are some exceptions, and in the case of homeowner’s association (HOA) dues things get a little complicated.
Section 523(a)(16) of the Bankruptcy Code provides that HOA dues that arise after you file your bankruptcy petition do not get discharged. Any back HOA dues you have before you file and that you list on your schedule of debts will be discharged. However, a lien for those dues may remain on your property through your bankruptcy unless your attorney seeks to have that lien voided. If the lien remains, when you sell your property, you may still have to pay those fees. Further, an HOA could foreclose on that lien.
What that means is that you should make every effort to resume paying your HOA dues after you file. Otherwise, the HOA will be able to sue you for those post-filing dues, and you won’t have the chance to discharge those in bankruptcy for up to another eight years. You should also talk to your bankruptcy attorney about whether or not you can get the lien set aside.
Filing bankruptcy requires some careful planning. You should talk to an attorney if you have questions about the dischargeability of your HOA dues.
Talk To A Colorado Bankruptcy Lawyer About How Your HOA Dues Will Be Affected
If you are behind on HOA dues, bankruptcy may allow you eliminate or get caught up on what you owe. We hope you’ll come in for a free consultation with an experienced bankruptcy lawyer. You can call 303.331.3403 or use our online scheduling system to make an appointment.