Homeowner's Association Fees In Florida Bankruptcy
Homeowners may still be liable for HOA dues after a Bankruptcy Discharge. One major issue in a number of the bankruptcy cases I deal with is the disposition of Homeowner’s Association Fees after a bankruptcy is discharged. In the typical chapter 7 bankruptcy the debtor who owns a home with a loan on it either surrenders their home and discharges the debt, or keeps the home and continues to pay the mortgage.
One thing that most homeowners do not understand is that even though they surrender their home in a bankruptcy they continue to hold legal title to the property until it is foreclosed on by the bank and the property is sold. Unless of course the bank will accept a deed directly to them from the homeowner/debtor.
The significance of this, with respect to HOA fees, is that the Debtor continues to be liable for HOA fees that accrue after the bankruptcy petition has been filed. Any fees that were unpaid at the time of the filing will be discharged but the debtor will be liable for post filing fees until the property is no longer in the Debtor’s name.
If you are thinking about filing bankruptcy speak with a Jacksonville Bankruptcy Attorney about your options
Greg Gilbert
Keith Maynard
