Can I Discharge HOA Dues in Bankruptcy?
If you are thinking about filing for consumer bankruptcy and are currently a homeowner, you may also be someone who pays fees to a homeowners association. When it comes to homeowners association (HOA) fees, it is important to understand how this type of debt gets handled in a bankruptcy case. It will be essential to understand the distinctions between Chapter 7 bankruptcy and Chapter 13 bankruptcy for the purposes of HOA fees. To be clear, there are particular considerations for HOA fees that are different from other types of debt. We will explain more below. Understanding HOA Dues and HOA Debt As an article in The Balance explains, HOA fees consist of money that is paid to the homeowners association when you own a home in a particular neighborhood or building. In effect, HOA fees are better thought of as “dues” that “help you share costs with others in your community.” The homeowners association typically is “a group of homeowners in the same neighborhood or building who share c...