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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37965
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I am being sued by my old HOA for Breach of Contract for back

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I am being sued by my old HOA for Breach of Contract for back dues. We stopped paying the mortgage on the condo in January 2012 & filed bankruptcy in August 2012. When we filed bankruptcy we were told that we were still liable for HOA fees prior to declaring bankruptcy. Do we have any other recourse other than to go to court & pay the amount due?

Hello,

Since homeowners association fees are generally considered covenants running with the land, they are secured interests which are nondischargeable in bankruptcy under Section 523(a)(16). Consequently, there is little point in fighting the lawsuit, unless you can show that a subsequent purchaser of your property (e.g., bank or new owner) paid the fees (in which case, the plaintiff/HOA has no damages and no grounds for a lawsuit).

The problem with discovery here is that in order to finding whether this payment occurred, you would have to defend the lawsuit. If you bet wrong, you will get stuck with the HOA's attorney's fees in addition to the unpaid fees. So, unless you can somehow discover this info without defending the lawsuit, it may be more cost effective to simply pay the fees and move on.

Hope this helps.

Hello again,

I see that you have rated my service as "poor." I have reviewed your question and my answer, and I do not understand the reason for your rating. My answer addresses your question completely and it is legally correct.

Would you please explain the poor rating, or ask me for clarification, so that I can resolve any misunderstandings and/or perhaps provide you with another answer to your question.

Thanks in advance for your understanding and cooperation.
Customer: replied 3 years ago.

woriong button was pushed, not poor.


 

If you would kindly rate this answer, it will override your prior rating. Thanks in advance.
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