Bankruptcy

Homeowners Association Can Lien House For Post-Filing Monthly Dues

By Jonathan Alper

One of my bankruptcy clients calls my office to complain that his homeowner association has threatened to put a lien on his house for non-payment of HOA dues. The client complained that he had listed the HOA as a creditor on his Chapter 7 bankruptcy petition.

HOA dues are an ongoing debt, and new payments are due each month. The client?s Chapter 7 bankruptcy may discharge personal liability on HOA debts accrued prior to filing which had not been perfected by a lien. The bankruptcy does not discharge new dues assessments for months after the bankruptcy filing and during the bankruptcy case. Not paying HOA dues post-filing will result in a lien.

Look at it this way. You discharge debts; you do not discharge creditors. Listing a creditor in bankruptcy for your old debts does not stop the same creditor from pursuing debts to the creditor incurred after filing.

Full post as published by Florida Bankruptcy Law on March 14, 2011 (boomark / email).