HOA "bankrtupcy monitoring" fees??

[sealpup]

My husband and I filed Chapter 7 on April 18, 2011 and were discharged August 22, 2011. We kept our house. All of the sudden the lawyer for our HOA is nickel and diming us to death with fees, including $95 "bankruptcy monitoring" fees. Does anyone know anything about those? Can they just charge them whenever they please and why are they having to monitor a bankruptcy that has been discharged??

[justbroke]

You would need to read your By-laws and Covenants documents. I don't think you could "technically" charge a bankruptcy monitoring fee once a case that is closed.

Again, check your docs. For what it is worth, HOAs and their attorneys are very difficult to deal with. I just had to deal with my HOA and I won a settlement with them. I went through 4 attorneys with the HOA and had to re-file with the bankruptcy court on a violation of the stay. They were certain they were right until I filed a motion for sanctions. It was not until then, that they "smelled" the roses as they had actually admitted to the violation in their initial answer to the motion to re-open. They later admitted to their error in a subsequent amended response.

I think the best thing is t check the By-laws and then use that against them. I had to do a similar things quoting the by-laws and show them they were wrong based on the by-laws and federal bankruptcy law.

These attorneys/firms clearly don't see the individual debtor/homeowner (especially pro-se) as any sort of threat.

[ksgirl38]

I thought most attorney's charged a flat fee so it sounds suspicious to me.

[HHM]

Unfortunately, any post filing work done by the HOA attorney is probably a valid charge. Your communities covenants will dictate.

I think the BK monitoring fee can be challenge, but is it really worth it over $95? However, the challenge would probably not be in BK court, but state court. The issue being, is the BK monitoring fee a legitimate collection expense when the debt to be collected has been discharged?

[justbroke]

I think the BK monitoring fee can be challenge, but is it really worth it over $95?

I forgot to mention that in my prior response. This is exactly why "fighting" the fee may be a waste of time. I'm trying to fight a red-light ticket (now at $321 or so) from a county where I've never driven a car, on a car that I don't own! It would cost me over $1,000 to go there and have a hearing on the matter. I think they just hope you pay and go away.

As I stated earlier, the charge may be a valid charge, but if it's a recurring charge, that I would argue is not a legitimate charge.

I argued my charge of fees as a violation because the (original) debt was discharged and they were trying to pursue me personally.

[despritfreya]

Not only is challenging the fee a "lost cause", if you lose the battle you have just incurred hundreds of more dollars in HOA legal fees that you have to pay. This is a money maker for HOAs and a loser for homeowners. What a scam.

Des.

[daveinIL]

Yet another item in my (long) list of reasons to never live anywhere with a HOA.

[sealpup]

I spoke with a paralegal at the firm where we filed- apparently these are becoming a lot more common. She asked me to fax her all the documentation I have regarding fees and they are going to look at it.
I have looked in my covenants and bi-laws etc. I am actually very surprised at how little there is about assessments and fees they can charge. From what I can tell it basically says that if you do not pay they have a right to legal remedies such as seeking a jugdment and liens, which is obvious. It goes on to state that "such judgment or degree shall include a reasonable attorney's fee to be fixed by the court". Does that mean the court dictates the attorney fees?
This bankruptcy monitoring fee is actual part of a long, very confusing story. Basically I entered into a payment agreement with the HOA, and paid as a agreed. Meanwhile, the HOA never bothered to tell their attorney that they had approved my payment plan and I was paying them. So all the while I am paying as agreed the attorney is sending is us collection letters and charging us frivolous fees, such as $100 for each letter they send, when the letters obviously where not even necessary since we were paying per the board approved payment plan. Each month when I would receive another collection letter from the attorney's office I would call their office and the HOA and try to get everyone communicating and on the same page. It was a waste of time. I have written my board and tried to explain the situation as best as I can and asked them to waive the attorney fees to the tune of $560. This was not my mistake, if they decide not to communicate with their attorney and vice versa, they can eat their own bill. Wouldn't it be against collection laws to be sending collection letters and fees to a person that is paying as agreed?

[btbeme]

Wouldn't it be against collection laws to be sending collection letters and fees to a person that is paying as agreed?

There are a lot of things that are against the law and have no penalty until caught, prosecuted, and convicted. And defending against that, even if wrongly prosecuted, can sometimes be more expansive in cash, blood, and tears than it is worth.

You are dealing with bloodsuckers. Whether they are right or wrong, the heartache needed to settle this "legally" is yours alone and not theirs. In fact, they likely see defending their practices in a court of law as nothing more than an expense in doing business. Sure, there are stories about some tenacious and lucky folks who put the bloodsuckers in their place, but bloodsuckers have a bothersome way of reanimating and going about their business.

That is how they get to be HOA management companies.

[ksgirl38]

You could always file a complaint with the FTC. Not saying it will do much, but it does get it on record without the cost. Or at consumerfinance.gov.