We are taking the threat of COVID-19 very seriously. Learn More
If you are looking for information regarding bankruptcy specific to these uncertain times, visit this page .
Skip to content
   

Are Post-Petition Homeowner’s Association Dues Dischargeable in Chapter 7?

Published April 30, 2013 by Sasser Law Firm

Many chapter 7 debtors are unaware that Homeowner’s Association (HOA) dues occurring post-petition are not dischargeable in bankruptcy. According to Section 523(a)(16) of the Bankruptcy Code any “fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor’s interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association” is not dischargeable.

HOA dues accrued after a chapter 7 debtor files for bankruptcy are not dischargeable as long as the real property remains legally titled in the debtor’s name. Even if it is the debtor’s intent to surrender the property, he is obligated to pay post-petition HOA dues while the property remains titled in his name. Any fees associated with the collection of post-petition HOA dues, including attorney fees, are also nondischargeable and therefore owed by the debtor. Since a sale or foreclosure can be a long and drawn out process, these dues can quickly add up.

Associations & Awards

  • 2019 Business North Carolina Legal Elite Badge
  • North Carolina Bar Association | Sasser Law Firm
  • super lawyers logo
  • Attorney at Law Magazine, Local Authority Award
  • Martindale-Hubbell award for high professional achievement at Sasser Law Firm
  • NC Bar Association Legal Specialization | Sasser Law Firm
  • client champion logo
  • Top Bankruptcy Attorney | Sasser Law Firm
  • American Bankruptcy Institute | Sasser Law Firm
  • National Association of Consumer Bankruptcy Attorneys | Sasser Law Firm
  • American Board of Certification | Sasser Law Firm
Free Consultation (919) 319-7400

Visit our cary office today

Cary, NC Office