Are Homeowners Associations More Protected Than The Homeowners In Bankruptcy?

Members of Maryland homeowners associations could still suffer additional fees and other costs while seeking debt relief by filing for bankruptcy. As Broadneck Patch reported on October 10, 2011, some consumers are learning about a provision to the federal Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 that prevents people from escaping any fees that are incurred once the bankruptcy process has formally begun.

“I guess these homeowners associations just had a good lobbyist in Washington,” Richard Stolker, a Rockville attorney who serves as chairman of a committee on consumer bankruptcy for the Maryland State Bar Association, told Patch. Many housing developments across central Maryland make it mandatory to join when moving in. In addition to assessing fees to finance amenities, Patch said such associations typically establish rules on home maintenance and related matters.

Prior to the 2005 law, bankruptcy courts could excuse bankrupt homeowners from association fees, but the 2005 law clearly states that such fees are “nondischargeable,” meaning that the judge cannot forgive the debt. These sorts of complications stress to importance of working with a knowledgeable Maryland bankruptcy lawyer when you are in desperate need of foreclosure help. If you have already been looking to a bankruptcy means test, you should know that you do not have do it alone. Kevin D. Judd is a reputable legal professional who can answer all of your questions about the Chapter 13 or Chapter 7 bankruptcy process when you contact our firm today to set up a free consultation.

Law Firm of Kevin D. Judd – Maryland bankruptcy attorney

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