AZ HOA gone wild !

[idainc]

We are about a month away from discharge in a no asset Chapter 7 surrendering a house in an HOA. Pre-petition dues to the HOA are in the filing, the HOA filed a lien for them, and they have continued billing prepetition dues during the stay for which I have a hearing scheduled for violation of the stay.

I got a letter from the HOA attorney asking for a resolution of the claim and they have also filed a proof of claim for prepetition and administrative charges ( his fee) for prepetition debt. Yes, prepetition debt in a Chapter 7 filing. I am lost. They claim this is a priority claim ?

Something tells me they never bothered to look at the filing, don’t know it’s a 7 not a 13 and just keep violating the stay like it doesn’t exist at all. The house will go in a foreclosure sale from the 1st mortgage and the 2nd mortgage and their lien will not be paid. Any thoughts ?

[idainc]

Bump.

I can only find references to administrative claims under Chapter 13. I cant imagine under what pretext this attorney thinks he can cntact us to pay a prepetition claim and get paid for doing it.

[StartingOver08]

Do you have an attorney or are you pro se?
The HOA collection attorney's are particularly aggressive - here in Fl too.

I had to have my attorney write a letter because my HOA was trying to collect on pre-petition debt also.

[idainc]

We filed Pro Se which I suspect is partly whats driving this. They are countin on some degree of ignorance.

I called their bluff on the prepetition debt issue for which I have his letter and their bills and filed a Motion to Show Cause and have a hearing scheduled with the judge in my case. There are now a total of four clear violations.

There is some confusion about HOA fees but the fact remains they are dischargeable up to the date of filing and the automatic stay applies .

[StartingOver08]

I hope you get awarded $$ from the HOA attorney's violation. The attorney here backed off, but there is no excuse to try to collect pre-petition debt.

I don't know how they can be considered a priority debt either. But maybe JustBroke or HHM can jump in with an answer.

[idainc]

[idainc]

[newbie2]

This is what I love to hear! Congrats to you for fighting back. Wish I could have been a fly on the wall to see the look on the other attorneys face :-)

[ryan]

CONGRATULATIONS!!...you deserve all kinds of credit for fighting this and winning. These HOA are often little dictatorships filled with some power hungry folks. It would be funny to sit in one of their Board Meetings as they have to announce for the minutes that they just blew $3700! LOL

[idainc]

Thanks Everyone !

Some funny lines of mine from the hearing - “ Sir, there are other professions in the world that have high hourly rates besides lawyers “
“ Sir, you asked me a question and I’m happy to answer it, but I need to ask you to shut up so I can do so.”
“ Part of my job is continuing education and research – like a surgeon. Would you want a surgeon that didn’t participate in continuing education or research ? Neither do my clients “.
" Just because I'm not a lawyer doesnt mean my time has no value"

"Sir, my decision to file Pro Se came about because I couldnt find a lawyer I trusted more than my own research "

The judge was clearly on our side and was very mad at the HOA.

[Bell30656]

That HOA may still be a thorn in your side. Even after surrendering the home you could be charged HOA fees from AFTER the date of filing. The banks sometimes take their sweet old time changing a house into their name to get you off the deed. There are several threads about it on here.

[idainc]

Yes, thanks. They were billing me for pre-petition debt. Rightnow we owe about 3 months or less than $200 and the trustee sale has been posponed another month. They've been delayed due to the BK and we're waiting for the discharge any day now.

[idainc]

Update - Judge finds in our favor and awards $3400. Teach those HOA people a lesson. Plus they have to pay their lawyers costs.

Any thoughts on how to collect this ?

[StartingOver08]

Congratulations on your win! I don't know how to collect on a judgment in your state - look up your states statutes. Here is a link to a very good article on collecting against an HOA in California, maybe it will give you some ideas: http://www.mmblaw.com/newsevents.php...2&section=home

[justbroke]

They will usually pay it without having to get an order from the judge. If they give you trouble, you can probably domesticate it to your local jurisdiction and have the Sheriff execute a writ.