Florida Bankruptcy and My HOA
It is an unsettled and highly debated area of bankruptcy law. Should a debtor who is willing to surrender a home or property in a bankruptcy be liable for post filing homeowner association assessments? As of right now, the answer is yes.
Chapter 7 bankruptcy discharges unsecured debts that were incurred by the Debtor pre-filing. Any debts that are incurred post filing, the debtor is responsible for. Assessments incurred post filing are among these debts. So, even though the debtor intends on surrendering the home, until the title is out of the debtor(s) name, they will be billed for the assessments.
There may be ways to have the Trustee sell the home off quicker, but that means that any occupants muct vacate the home faster also. The sooner the deed and title is out of the debtor's name, the less they will be responsible for in HOA or condo fees.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
