If you file for bankruptcy, what happens to a debt owed to your HOA?
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If you file for bankruptcy, what happens to a debt owed to your HOA?
My fiancé has court this week. The HOA where he lived 4 years ago is suing him for not paying. His condo went into forclosure. He wants to claim bankruptcy and put this on there. Does he have to file bankruptcy and have this matter on filed paperwork before he goes into court? Will he still be able to file it on the bankruptcy if there is a judgement against him for it?
Asked on January 27, 2014 under Bankruptcy Law, California
Answers:
Anne Brady / Law Office of Anne Brady
Answered 10 years ago | Contributor
Any lawsuit with the HOA would be automatically stayed due to a bankruptcy being filed, unless the HOA was able to get the stay lifted. The HOA would become just another creditor in the bankruptcy, the difference being that they usually can put a lien on the house.
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