Along with the traditional costs associated with owning a home, many people throughout Georgia and the rest of the United States also pay dues to a condominium or homeowners association (HOA). These groups are created to make residential communities better places to live by maintaining common areas and setting standards relating to home appearance and neighborhood life. When someone living in one of these communities is dealing with financial problems that are serious enough to consider bankruptcy, past due obligations to an HOA or condo association might be one of the outstanding debts.
Determining how obligations to a residential community organization are treated depends on several factors. If you decide to give up your home or condo as part of your Chapter 7 bankruptcy, you can discharge HOA dues that were incurred up to the date you file your bankruptcy petition. However, you are still responsible for fees that accumulate from the time you file until you surrender ownership of your residence.
You should understand that HOA and condo association dues are not classified in the same way as unsecured debts, such as credit card balances and medical expenses. Should you opt to keep your home, Chapter 7 bankruptcy does not eliminate ongoing obligations tied to property ownership, including HOA fees, property taxes and mortgage payments. Failing to stay current on your HOA dues could result in penalties, liens or even foreclosure by the association.
Understanding how HOA dues are handled in bankruptcy can help you make informed decisions about your financial future and avoid unexpected liabilities. When you discuss your priorities with an experienced attorney, they can advise you on how to secure the result you seek, whether that involves putting your obligations behind you and making a fresh start somewhere else or dealing with your debt while remaining in your residence. One potential option is a Chapter 13 repayment plan that allows you to keep your home while addressing prior and current dues in a plan tailored to your income and expenses.
Jeff Field & Associates provides comprehensive counsel to Georgians on a full range of bankruptcy issues. To discuss your specific debt relief needs, please call 404-381-1278 or contact us online. Our offices are in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Scottdale.