Homeowners association (HOA) debt may be a significant issue if you’ve filed for bankruptcy. If you own a condominium or a home in a community with an HOA then you may be liable for past dues, late fees, collection fees, and more. In most cases, HOA debt cannot be discharged. There are, of course, exceptions. If you’re confused about that status of your HOA debt then let a Lerner and Rowe Law Group bankruptcy attorney help find the best solution for you.
Arizona Automatic Lien Laws
HOA debt in Arizona is governed by revised statute § 33-1807. The law states that an automatic lien is placed on an HOA-governed property at the time HOA fees are due. In most cases, past-due HOA dues are not dischargeable. It depends, however, on whether the person filing for bankruptcy plans to keep the property or, in the case of foreclosure, when bankruptcy was filed. Let’s go through a few scenarios.
- If the person filing for bankruptcy intends to keep the house or condominium, they will be responsible for any past-due HOA fees, late fees, and collection fees.
- When a house or condominium is foreclosed after bankruptcy is filed, the declarant will be responsible for any past-due HOA fees, late fees, and collection fees.
- If the person has their house or condominium foreclosed prior to filing for bankruptcy, some or all of their HOA debt may be discharged.
Due to Arizona’s automatic lien statutes, deciding how to handle past-due HOA dues can be difficult. If you need assistance figuring out the optimal solution for your particular situation then contact a Lerner and Rowe Law Group bankruptcy attorney. Our experienced lawyers are well versed in the intricacies of Arizona bankruptcy laws, including how to handle HOA debt.
Contact an Arizona Bankruptcy Lawyer
You can contact Lerner and Rowe Law Group’s bankruptcy attorneys 24 hours a day, 7 days a week. You can get in touch by phone at 602-667-7777 or online through our convenient LiveChat and form features. If you’d like to visit us in person, our office hours are 8:00 a.m. to 5:00 p.m. Monday through Friday. Please visit us for a free consultation.