I don't have money upfront to pay $2,700. My bankruptcy attorney has basically thrown me under the bus. Contacted attorney for community management company who seems very kind and fair and will try to mediate resolution.
Ronald David WiltonEmployment / Labor AttorneyEncino, CA ·
If the fees arose after the date your petition was filed, even if you received a discharge later, those debts would normally remain. I am a big fan of mediation, so go ahead and pursue that and see what you can work out.
If you filed a Chapter 13 bankruptcy the post-petition HOA fees might have been discharged. If you filed a Chapter 7 the HOA fees did not go away and there's not much your bankruptcy attorney can or could have done for you. I recommend you work out a payment plan directly with the HOA.
You don't state whether you filed a Ch. 13 or Ch. 7, or whether your intent was to surrender or keep the home. HOA fees are a little different than other fees. Assuming you filed a Ch. 7 and your Statement of Intent indicates you want to surrender your home, then your pre-filing fees will be discharged. However, any fees that accrue after filing are not discharged. In this situation, you should speak with the HOA and see if you can work something out where they will waive all/some of the post filing fees. If your intent is to keep the home, then your personal liability as to pre-filing fees is discharged. However, the HOA's lien will remain on the house. So in the end, you have to pay pre and post-filing fees if you want to keep the house. In this case you should speak with the HOA to work out some sort of payment plan. Good luck to you!
This is a very technical issue involving the interplay between HOA and bankruptcy law in Virginia. Under Bankruptcy Code Section 523(a)(16) linked below, condominium, coop, and HOA fees or assessments that become due after the bankruptcy has been filed may not be dischargeable as long as the debtor or the trustee has a legal, possessory or ownership interest in the property. Often, the association accelerates the maturity or the fees or assessments before beginning collection efforts, and a Memorandum of Lien filed in land records may evidence such an acceleration, along with instructions to the management company from the board, or notes from a meeting of the board of directors of the association. This presents a possible defense for the unit or lot owner facing a collection lawsuit, if the acceleration occurred before the bankruptcy was filed. In addition, the fees or assessments may have been paid by the substitute trustee for the lender or the next title owner of the unit or lot if it had been sold at a foreclosure auction or otherwise purchased or transferred. There are numerous possible issues involved in your question which require the research or assistance of legal counsel for your best chances of avoiding this lawsuit.
This is not generally a complicated or technical issue, and a lawyer is not required for a $2700 debt. You certainly can retain one and pay the fees (if your BR lawyer wanted to be paid for the work, that is not throwing you under the bus). If it is not a debt discharged in your case, then, like any other debt, your options are to pay or settle. As mentioned, mediation is often a good choice as long as it is a true third party and you don't have to pay for it. You might work out a payment plan.
