Living in Home After Bankruptcy? You Still Owe HOA's

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Real Estate Agent with Platinum Real Estate

Bankruptcy FAQ’s Regarding HOA fees:

Question:  “Do I still owe HOA fees after filing bankruptcy even though I surrendered my residence?  I moved out of my home after I filed bankruptcy but before the discharge.”

Answer:  This is a very common question and the bankruptcy code that applies is strange.  First. the money you owe the HOA should be listed as a creditor. Hopefully, you disclose this information to your bankruptcy attorney. 

Under the law a person surrendering a home, condominium,  townhome, any real property having HOA fees, can discharge whatever HOA fees that are owed prior to filing bankruptcy.  In other words, if you file bankruptcy, the amount owed for such fees at that time are discharged if the court grants you a Chapter 7 discharge of your debts.   

Under the same: Bankruptcy Code 523(a)(16), you are still responsible for the HOA fees until sale or the foreclosure takes place. The Code implies that until you no longer have legal, equitable or possessor ownership in the unit, you owe the fees. This can be fees on a home, condo or some other unit that has Home Owner Associations fees.  This applies even if you have moved out and are no longer living at the residence.  Thus, any HOA fees or costs including late fees you are still responsible.

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hoa bankruptcy
homeowners association and bankruptcy
short sale questions and answers what is a short sale

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