Pre-petition HOA arrearages?
Posted: Mon Oct 11, 2010 5:12 pm
Lien rights depend on CC&R's.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
clifford_bordeaux
Sent: Monday, October 11, 2010 2:55 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Pre-petition HOA arrearages?
Hello everyone,
I have a question on pre-petition HOA arrearages.
I have a potential client with around $12,000 of pre-petition HOA
arrearages. He will be filing Ch 13 to catch up with his mortgage and will
resume payments to the HOA after filing his case. Somehow I had the
impression that homeowners' associations had a statutory lien on owners'
units for association dues, but after further research I can not find a
statute indicating that HOAs have an automatic statutory lien.
523(a)(16) excepts from discharge any post-petition HOA dues, but does not
say anything about pre-petition arrearages. Cal. Civ. Code Section 1367
outlines the procedure for HOAs to record liens for back association dues.
Am I correct in concluding that absent the recording of a lien by the
association, the HOA arrearages are considered general unsecured debt and
that no lien strip is needed in order to treat these debts as Class 5 debts
in a Chapter 13 plan? And if a lien has been recorded by the HOA, and the
lien is wholly unsecured, are there any special limitations on the debtor's
ability to strip the lien?
Message
Lien rights depend on
CC&R's.
David A.
Tilem
Certified Bankruptcy
Specialist*
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