Oftentimes, the most important thing to an individual filing for bankruptcy is whether he or she is capable of keeping his or her home. Please read on and speak with an experienced Rockland County bankruptcy attorney to learn more about how to protect yourself from the Homeowners’ Association.
What does a Homeowners’ Association do?
Your Homeowners’ Association’s job is to ensure you are making all your homeowners’ dues and assessments on time. If you fail to do so, there is a very good chance that your Homeowners’ Association will begin to come after you by creating a lien on your house for the amount of debt you owe. Rather obviously, this is an extremely precarious position to be in for a homeowner. As the debt increases, so does the lien. Therefore, if you cannot find a way to pay off the lien, there is a very good chance you will have to file for bankruptcy.
Unfortunately, there are times where individuals are unable to discharge their HOA debt that come due after you file for bankruptcy. That is why if you are considering filing for bankruptcy, you must ensure that you speak with an experienced bankruptcy attorney as soon as possible. A knowledgeable attorney will help ensure you file at the right time, as well as have all the documentation necessary for filing.
How can Chapter 7 bankruptcy help me?
Those who are not drastically in debt may still keep their homes via a Chapter 7 bankruptcy filing. Generally, when you file for chapter 7 bankruptcy, most of your unsecured debts are discharged. However, liens on your home are generally not discharged in a Chapter 7 case, which is why you have to be sure that the Chapter 7 discharge is enough to balance out your financial situation.
Is Chapter 13 bankruptcy better for protecting me from Homeowner’s Association debts?
Chapter 13 bankruptcy is generally better for individuals who need serious protection from HOA debts and liens. In a Chapter 13 bankruptcy, you and your attorney will work to create a 3-to-5-year payment plan, which formally establishes how you will pay off your HOA debts. Once you file, an Automatic Stay will go into effect, which generally prevents your Homeowners’ Association from all collection activities, thereby permitting you to keep your home.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.