Legal Question in Bankruptcy in California
Bankruptcy against Pending HOA case
A member of my HOA is suing the HOA and each member. The case has been filed and a hearing is set for July. I filed for bankruptcy yesterday. I am selling my condo. I want to apply my bankruptcy to the pending lawsuit. Will the buyer of my unit be responsible for my interest in the lawsuit if I sell to him. Will the suing member have to name the new owner in the lawsuit?
1 Answer from Attorneys
Re: Bankruptcy against Pending HOA case
This is a pretty complex question, as most claims would run to you, and you could discharge them in bankruptcy.
However, if the suit goes to the condo somehow -- I cannot think of an example but for comparison, say you all owned neighboring houses and the suit was to allow this neighbor to build a driveway across your lawn. Whoever bought the house would effectively buy into that lawsuit.
If, on the other hand, the suit is to you personally, that can be stopped and any potential liability discharged in bankruptcy.
-- Amy Kleinpeter
http://www.amykleinpeter.com
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