Can Unpaid HOA Dues Be Included in a Bankruptcy Filing?

Yes, upaid HOA (homeowner’s association) dues can generally be included for discharge consideration in a bankruptcy petition. But the result of such an inclusion of the homeowner’s association fees depends upon the circumstances of the filer, the amount of money due to the HOA, and the debtor’s intent for the real estate property.If the debtor is abandoning the property through the bankruptcy case, the HOA dues and assessments will be discharged.

However, if the HOA dues have been reduced to a judgment or otherwise act as a lien on a house or condominium, the Association itself may then be considered a secured creditor due to the judgment or the lien.  If this is the case, and if the debtor desires to retain the real property upon which the judgment or lien exists, the debtor may be required to pay or satisfy the judgment or the lien outside of bankruptcy.  (But in certain cases, if the HOA judgment or lien exceeds the equity in the real property, the debtor may be able to “strip” the lien through the bankruptcy process.)

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