Individuals subject to condo fees and homeowners association dues are shocked to learn that after they file bankruptcy they still have an obligation to pay fees to the condominium or homeowners association for property they have abandoned.
To be certain, filing bankruptcy discharge the condo or HOA fees that were due before the case was filed. But the bankruptcy filing will not discharge fees that come due after you file.
This is as a result of intense and effective lobbying by these associations. Congress created an exception in the Bankruptcy Code Section 523(a)(16) which provides that a discharge will not include fees or
assessments that become due and payable after the case is filed. Therefore, a debtor will continue to be liable for these fees after the filing of the bankruptcy case until the debtor no longer legally owns the property. This means that debtor is liable for fees until legal title to the property is transfered to another person/entity.
If you have condo due and HOA fees and are considering bankruptcy make sure you understand your responsibilities as you move forward. Consult a knowledgeable bankruptcy lawyer.
Baltimore bankruptcy attorneys
Disclaimer: This article is provided for informational purposes only and should not be construed in any way as legal advice. This article does not create an attorney-client relationship.