My answer on @Avvo to: Should I file bankrupcy fast?… http://t.co/sbAk98ov
Should I file bankruptcy fast?
Could I do chapter 7 bankruptcy to prevent hoa from taking home in FL? I am trying to do a modification with bank. They want the hoa taken care of before approval. I’m running out of time, 3 weeks. I also have many bills due to a medical situation so would do at some point.
Yes, a Chapter 7 will allow you to discharge pre-petition homeowner’s association fees assuming that the association has not yet obtained a secure claim/lien on the real property. However, as you may be aware, a Chapter 7 bankruptcy takes several months to complete and during this time, your loan modification may be held up in the process. In addition, in our Firm’s experience, your loan modification file will be transferred to a “bankruptcy department”, which means that the loan modification file may change hands from the people currently reviewing your financials. If you are stating that you have 3 weeks to “take care” of the homeowners association fees, you should be aware that a Chapter 7 filing will effectively stay collection of pre-petition fees, but your discharge will take several months to be granted by the Court. Accordingly, I would urge you to seek legal counsel right away and contact your lender with counsel to assess exactly what is required of you, and if needed, your attorney should intervene to ensure that your issues are properly raised with the lender.
As a separate consideration, please note that a Chapter 7 bankruptcy will not discharge post-petition homeowners’ association fees. It appears that you are looking to keep the home, and not “surrender” it through your case, so this may not be relevant to you. If you were looking to “surrender” the home, you would want to consider the “super-discharge” abilities of a Chapter 13 in connection with the dischargeability of post-petition homeowners’ association fees.
Regarding your medical situation, from the facts, you may also discharge those debts in either a Chapter 13 or a Chapter 7.
Joseph Paul Middlebrooks Shapiro
I believe Mr. Sharpiro answered your questions very well. I just want to add one additional comment about lien avoidance. You may avoid the pre-petition homeowners’ association fees personally through bankruptcy; however, if you are unable to strip the lien of the homeowners’ association through §506 of the bankruptcy code the homeowners’ association may attempt to seek in a rem foreclosure action against your property. You will need to speak with an experienced bankruptcy attorney in your area.
Paul F. Daley