Homeowner Association (HOA) fees can be a nightmare, even for people who aren’t struggling financially. These fees can be eliminated through bankruptcy, but there are common issues that arise. Talking to an attorney can ease the pressure associated with HOA fees during bankruptcy proceedings.
Chapter 7 or Chapter 13 bankruptcies can help discharge past due HOA fees, along with other debts such as medical bills and credit card debt. Homeowners can run into problems if they continue to live at their homes and the bank has not finalized the sale of the property following a bankruptcy. Any HOA fees that accumulate after the case is filed are not dischargeable, and the homeowner is still responsible for them.
HOA fees can be very costly, and the homeowner’s obligation to pay them doesn’t disappear until the deed has transferred to another owner. This can occur months after a bankruptcy has been finalized. That’s why it’s important to contact a bankruptcy attorney as soon as possible if you’re facing financial pressures. Banks often wait as long as possible before going through with the foreclosure sale of a home. Even if you’re not living at your home during a foreclosure process, you might still responsible for the HOA fees.
Talk to an attorney about your plans. Some HOAs will negotiate lower fees if they know a home is entering foreclosure or the owners are filing for bankruptcy to avoid future lawsuits and collection issues. If you have issues with mounting debt, contact our office now for a free consultation.
Law Firm of Kevin D. Judd– Washington DC bankruptcy attorney