In Arizona, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy will discharge your overdue homeowners association dues, but it will NOT stop your obligation to pay future HOA dues. Even if you no longer live in the home.
The HOA dues are your legal obligation until the home is legally owned by someone other than you – be it bank or new family. In today’s complicated housing market and financial mess, completing a foreclosure or short sale can take months or even years after a bankruptcy has been discharged.
If your fees are several hundred dollars each month or each quarter, the amount can quickly become significant debt. Most HOAs will negotiate with former homeowners and the first step is to contact your HOA directly to determine their policies. If negotiation is not successful, the experienced bankruptcy lawyers at Frutkin Law Firm, PLC, in Phoenix, Arizona, may be able to help you.
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