Legal Question in Credit and Debt Law in California
My husband and I filed for Chapter 7 bankruptcy in July 2010 and got our condo foreclosed on in Oct. 2011. We just recieved a letter from an attorney stating that we owe money to our prior HOA for about $7000 for the monthly payments for dates above and it also states for "bal from 01 acct" and "complaint." It states that if we don't dispute in writing or pay the whole sum that they may file a legal action and obtain a judgment against us.I don't understand about the "bal from 01 acct" and the "complaint" charges but if we don't dispute how likely is it that they will sue us? We have heard of people getting letters like this regarding their credit cards and not having anything happen. We live in CA.
1 Answer from Attorneys
Condo fees after filing for bankruptcy are not dischargeable so you owe the fees after the filing date until the foreclosure date, whether or not you live in the property. There have been some cases arguing that if you surrender the property in the bankruptcy case you are not liable for the HO fees or anything else related to the property. Most courts don't agree, particularly in Chapter 7 cases.
It is highly likely you will be sued since HO Associations are very aggressive in collecting and spend money suing people that are unlikely to ever pay anyway because they are judgment proof.
That "bal from 01 acct." is just the HO accounting system information of no legal significance.
People owning properties subject to HO fees should delay filing a bankruptcy case if possible until after the foreclosure. That is also why just choosing a lawyer to do your bankruptcy just because it is the cheapest lawyer may become very expensive later. I think you should have been warned about the potential liability for the HO fees. I tell clients about the issue and they choose when to file knowing about that issue.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
