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310.376.9865
People who are edging toward bankruptcy do a little research and soon discovery some debts are not wiped out by bankruptcy (not discharged), such as child support, alimony, some back taxes, etc.
In re Shawn Burguendo, 2:09-bk-10375-RJH, in an opinion released May 26, 2011, the Court found that a motion for relief from stay does not transfer legal title, post-petition Home Owner’s Association (“HOA”) dues are not dischargeable.
Most bankruptcy lawyers are aware that post petition HOA dues are not dischargeable, and so inform their clients.
In this case the bankruptcy debtor signed an agreement with the bank to life the bankruptcy stay on the property. However, the bank never proceeded with the foreclosure (this is very common). Since, the bank never foreclosed, the bankruptcy debtor was still liable for the HOA dues every month after the bankruptcy was filed for as long as the debtor has either a legal interest, an equitable interest, or a possessory interest in the property.
Until the bank forecloses, the bankruptcy debtor is liable for the HOA dues that incur after filing the bankruptcy.
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- Los Angeles/Orange County Bankruptcy Attorney
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
