CAN CHAPTER 7 WIPE OUT ARREARS ON HOA??

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Latest post 01-01-2011 11:33 PM by Drew. 9 replies.
  • 12-27-2010 6:56 PM

    • minino
      Consumer
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    • Joined on 09-18-2010
    • CA
    • Posts 16

    CAN CHAPTER 7 WIPE OUT ARREARS ON HOA??

    Im about two years behind on my monthly HOA assessment fees, is it possile to get rid of that by filing chapter 7 BK? They have already put a lien on the property.

    thanks for you opinion

  • 12-27-2010 6:57 PM In reply to

    • DOCAR
      Lawyer
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    • Joined on 12-09-2000
    • NV
    • Posts 5,191

    Re: CAN CHAPTER 7 WIPE OUT ARREARS ON HOA??

    It can wipe out the debt, but more than just a filing would have to be done to remove the lien.

  • 12-27-2010 7:18 PM In reply to

    • minino
      Consumer
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    • CA
    • Posts 16

    Re: CAN CHAPTER 7 WIPE OUT ARREARS ON HOA??

    Thank you so much for your answer, but what exactly do you mean by something else would have to be done to remove the lien?

    also, can I just start making the regular monthly hoa due once the arrears are discharged?

    thank you again

  • 12-27-2010 7:20 PM In reply to

    Re: CAN CHAPTER 7 WIPE OUT ARREARS ON HOA??

    If you expect to keep your home, I'm not so sure you can discharge the arrears.

    I may be wrong.

    I suggest you talk to a bankruptcy attorney.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 12-28-2010 12:51 AM In reply to

    Re: CAN CHAPTER 7 WIPE OUT ARREARS ON HOA??

    minino:
    Thank you so much for your answer, but what exactly do you mean by something else would have to be done to remove the lien?

    The HoA likely has a lien on the property for the arrearage. The bankruptcy discharge only relieves of you personal liability for the debt, meaning the HoA couldn't garnish your wages, attach your bank account, etc., to collect. But so long as the lien remains on the property, the HoA will be able to get its money from the property. Something more than just the discharge is needed to strip away the lien from the property. If there is value in the property to which the lien attaches, you won't get the lien removed. You should discuss this with your bankruptcy lawyer.

  • 12-28-2010 3:20 PM In reply to

    • Drew
      Consumer
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    • Joined on 03-30-2000
    • PA
    • Posts 49,309

    Re: Pay Off Debt

    Apparently in CA the HOA can force a nonjudicial foreclosure and buy it in for just the HOA lien amount if there are no higher bidders--be careful!



  • 12-31-2010 4:42 PM In reply to

    • GoJenny
      Consumer
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    • CA
    • Posts 9

    Re: Pay Off Debt

    Good point Drew.

    However, a law passed in 2006 was implemented to prevent some of the practices of the past.

    http://realtytimes.com...

  • 12-31-2010 6:00 PM In reply to

    Re: Pay Off Debt

    GoJenny:

    Good point Drew.

    However, a law passed in 2006 was implemented to prevent some of the practices of the past.

    http://realtytimes.com...

    I would not rely on a 4 year old summary of a "recently passed law" without actually reading the statute that it bacame.

    Please cite the statute number.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 01-01-2011 11:33 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,309

    Re: Pay Off Debt

    Without reading SB 137, the summaries suggest if you are more than $1800 behind OR more than 12 months late , the protections disappear and your HOA can proceed with a nonjudicial foreclosure .



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