Should I continue paying my HOA dues after I file for bankruptcy even if my house is going to be foreclosed?
One confusing aspect of the bankruptcy process is knowing who you should pay at what time. Sometimes, even when someone is a creditor and the debt you owe to them will be discharged, your attorney may advise you to continue making payments while the bankruptcy case is in process. This may be the case if you owe dues to a home owner's association.
If you owe unpaid homeowners association dues at the time you file for bankruptcy, this amount will be discharged by the bankruptcy like other debts. But from the date of the filing of the bankruptcy petition, any HOA dues that continue to accrue while you still possess that property are your responsibility from that point. You continue to owe these dues even if you no longer live at the property.
Importantly, even if this property is in the process of foreclosure, you will be responsible for these HOA dues until the property is actually transferred at the foreclosure sale. And mortgage lenders may, for various reasons, decide to delay the foreclosure process for a length of time.
If you no longer live at or plan on moving from a property that requires HOA dues and you have decided to abandon this property to foreclosure, work with your attorney on your best options to avoid this HOA liability.
With ELC we will discuss these issues and come up with a strategy in your free consultation.
Set up a free consultation today and we'll make a strategy for continuing bills like HOA dues!
And stay tuned for more blog posts covering some of the other frequently asked questions about bankruptcy. We love sharing our expertise about bankruptcy so visit our Why Bankruptcy menu on our home page for more valuable information, including some of the FAQs and Dos and Don'ts we've already posted.
As always, and with all information on EnrightLawCenter.com, this post should not be considered legal advice, and without a written agreement you have not established an attorney-client relationship. Every case is different and we highly recommend consulting with a bankruptcy attorney before taking any action.
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