If You Surrender Your Home In Bankruptcy
Chapter 7 bankruptcy is often referred to as “liquidation” bankruptcy, because many of your assets may be sold to pay off creditors. Although there are provisions in place to allow most filers to keep their houses or condos, this is not always the best option.
If you choose to give up your home or condo in bankruptcy, outstanding homeowner’s association debts will typically be discharged, in addition to other debts which are associated with the property. However, this will not clear you of any debts which are accrued after filing for bankruptcy, unless those fees are worked into the foreclosure details. An experienced Brevard County bankruptcy attorney can help you identify any outstanding debts so you can avoid a lawsuit later on.
Not sure if bankruptcy is right for you? Call Buchalter Law Group today to get started with a free case evaluation.
If You Keep Your Home
If you do hold on to your home in Chapter 7 bankruptcy, it is crucial that you work with the homeowner’s association to pay off any outstanding dues. This is because HOAs typically have the power to place a lien on your property, which will allow them to foreclose on your property. In Florida, the HOA or COA has the power to include the following debts in their lien:
- Association fees/dues
- Special assessments (extra charges to cover HOA expenses)
- Late fees
- Attorney’s fees
- Interest (if the rate is not specified in the bylaws or declaration, interest accrues at 18% annually)
Trust A Brevard County Bankruptcy Attorney for Guidance
Regardless of whether you plan on keeping or selling your home as part of the Chapter 7 bankruptcy process, it is important to consult with an experienced lawyer who can make sure your interests are protected. Many people who have gone through bankruptcy think that the matter is behind them, only to be later served with a lawsuit for unpaid fees – don’t make the same mistake.
Buchalter Law Group is committed to helping people take control of their financial future. Call (321) 320-6088 today to learn more.