If I file for Chapter 7 Bankruptcy in Miami, Florida can I get rid of my HOA dues?

If you are thinking of filing for Chapter 7 Bankruptcy in Miami, Florida here is what you need to know about HOA dues.  There are two scenarios, keeping your house or surrendering your house.

KEEPING YOUR HOME:

If you are keeping your home in a Chapter 7 bankruptcy in Miami, Florida you will NOT be able to get rid of your HOA dues.  These HOA dues are similar to that of a mortgage and stay with the home.  The HOA will be able to sue you to foreclose.  There may be a means to get rid of your HOA dues in a Chapter 13 bankruptcy, but you would need to consult with a bankruptcy attorney to see if it is possible in your case.

SURRENDERING YOUR HOME:

If you are surrendering your home in a Chapter 7 bankruptcy in Miami Florida then you will be able to get rid of ALL of your HOA dues that were due up until your bankruptcy filing.  However any HOA dues that were accrued after filing of the bankruptcy will not be dischargeable.  Here is what that means.  If at the time you filed for bankruptcy you owed $10,000 in past due HOA fees, then they will be discharged, however any monthly payments going forward (until your house is taken back by the bank or sold at auction) you will be responsible for.    I have seen the HOAs sue debtors for fees accrued after bankruptcy so it may be wise to attempt to do a short-sale or a deed-in-lieu as soon as your bankruptcy is complete to avoid new HOA debts.

 

If you are thinking of filing for bankruptcy in South Florida (Broward, Miami-Dade, or Palm Beach Counties) and would like a free consultation regarding your bankruptcy options then please give Shmucher Law a call at 954-309-5559 or 305-741-5553.  We have offices located throughout South Florida.

 

Top