HOA foreclosure redemption period and bankruptcy
Posted: Sat Feb 21, 2015 4:47 pm
Something I learned today.
Even though this published Yun decision says you cannot redeem property
through a Chapter 13 Plan and it's analysis looks spot on, that doesn't
mean potential clients should be turned away. I spoke with the HOA attorney
after today's CLE and she said that while it would be a tough board
decision, most boards would rather be paid than to foreclose.
So if a client comes to you after the HOA has foreclosed, step 1 would be
to contact the attorneys for the HOA to see their position with respect to
this sort of arrangement. If the attorneys cannot be reached before the 90
day period has expired, with the client's informed consent, it would be
okay to file a Chapter 13 Plan where the redemption amount is paid over x
months. See what the HOA says at that point.
One question I didn't get a chance to ask is regarding 523(a)(16). My
client files for Chapter 7 bankruptcy and incurs $2,000 in postpetition HOA
dues. These are nondischargeable per 523(a)(16). What if after obtaining a
discharge, the client waits 8 years and files for Chapter 7 bankruptcy. Is
this debt dischargeable now?
Sincerely,
*Michael Avanesian, Esq. *AVANESIAN LAW FIRM
101 N. Brand Blvd., PH 1920
Glendale, California 91203
Tel: 818.276.2477 Fax: 818.208.4550
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On Wed, Feb 4, 2015 at 4:59 PM, Jim Selth jim@wsrlaw.net [cdcbaa] wrote:
>
>
> Thanks for sharing that very recent opinion, Michael. I cant say I
> agree with all of it (especially the violation of stay portion of the
> ruling), the judge seems to be correct with his analysis of the 1322(c)(1)
> and 108(b) issues.
>
>
>
> Jim
>
>
>
> James R. Selth
> Certified Bankruptcy Specialist*
> Weintraub & Selth, APC
> 11766 Wilshire Boulevard, Suite 1170
> Los Angeles, California 90025
> Telephone: (310) 207-1494
> Facsimile: (310) 442-0660
> E-Mail: jim@wsrlaw.net
>
> *Certified by State Bar of California as Certified Legal Specialist in
> Bankruptcy Law
>
> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT
> OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY
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>
>
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com]
> *Sent:* Wednesday, February 04, 2015 2:21 PM
> *To:* CDCBAA List Serve
> *Subject:* Re: [cdcbaa] HOA foreclosure redemption period and bankruptcy
>
>
>
>
>
> I hope you're not thinking of filing in Riverside! Check out Judge Yun's
> first and only published opinion...
>
>
>
>
> http://www.cacb.uscourts.gov/sites/cacb ... terMOD.pdf
>
>
>
>
>
>
> Sincerely,
>
>
>
>
> *Michael Avanesian, Esq. *AVANESIAN LAW FIRM
> 101 N. Brand Blvd., PH 1920
> Glendale, California 91203
> Tel: 818.276.2477 Fax: 818.208.4550
>
>
>
> On Wed, Feb 4, 2015 at 12:12 PM, Jim Selth jim@wsrlaw.net [cdcbaa] cdcbaa@yahoogroups.com> wrote:
>
>
>
> Colleagues:
>
>
>
> Has anyone attempted to use Chapter 13 during the 90-day post
> HOA-foreclosure redemption period under Civil Code Section 5715 to try cure
> the amount over time? Can a bankruptcy stay the 90-day redemption period
> to allow this? It appears from preliminary research that the Trustee> Deed Upon Sale cannot be recorded until the 91st day. The bankruptcy
> filing would stay the recording, but could a motion for relief from stay be
> defended by proposing to cure the redemption amount through a Chapter 13
> Plan (and of course remain current on post-petition HOA dues)?
>
>
>
> I realize this issue may come up during our February CDCBAA program on
> HOAs in bankruptcy, but Im hoping for some input before that date as I
> continue to research this for a potential client.
>
>
>
> Jim
>
>
>
> James R. Selth
> Certified Bankruptcy Specialist*
> Weintraub & Selth, APC
> 11766 Wilshire Boulevard, Suite 1170
> Los Angeles, California 90025
> Telephone: (310) 207-1494
> Facsimile: (310) 442-0660
> E-Mail: jim@wsrlaw.net
>
> *Certified by State Bar of California as Certified Legal Specialist in
> Bankruptcy Law
>
> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT
> OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY
> LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION,
> DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE
> NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS
> MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.
>
>
>
>
>
Something I learned today.Even though this published Yun decision says you cannot redeem property through a
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