REPEAL The 2005 Bankruptcy Law Petition

[keepmine]

Hi, With a Republican majority in the House of Representatives there is no way that Bankruptcy laws will change. The republicans and democrats worked together to create the current bankruptcy laws. If you are truly poor you can easily qualify for Chapter 7 bankruptcy. However, if you are fully employed and took out lines of credit the majority in congress support making that person to use Chapter 13 bankruptcy to reach a settlement with creditors.

Not sure what you're basing that last sentence on. Plenty of employed people with large debts have successfully filed and received a Chapter 7 discharge.

[catleg]

Don't forget that this law also put derivative counterparties ahead of depositors in terms of priority of claims to assets. Very very bad.

[justbroke]

Don't forget that this law also put derivative counterparties ahead of depositors in terms of priority of claims to assets. Very very bad.

I won't pretend to know what you mean by that.

[justbroke]

My personal gripe is the power given to HOA's in 2005. The general manager of the HOA I am unfortunately in when I questioned his power said, "we are above the law. We make our own rules and regulations and we enforce them as we see fit." When I spoke with an attorney he told me the man was right. How can this be in America? If you disagree with your HOA they can take your house? You bet they can and they can do for a few dollars to top all.

HOAs receive their powers, actually, under State non-bankruptcy law and not Federal law.

The problem is that people believe that 11 USC 523(a)(16) gave HOAs some sort of new rights, but the change did not. An HOAs contracts, or CC&Rs, is determinative as to whether it is a contract running with the land or an executory contract. If it is the latter, it is in fact dischargeable and discharged upon receiving a discharge in any chapter of bankruptcy. State non-bankruptcy law determines what type of "contract" it is; not the Federal bankruptcy laws. If you look at the precedence and legislative history of the dischargeability of HOA and CAs (condominium associations), you will see that the 2005 law only codified what was already the precedence established in nearly every case.

Today, if an HOA/CA's assessments are "executory" under State non-bankruptcy law, then they are dischargeable (pre-post petition) if you don't assume the contract. The BAPCPA codified this by clarifying that if the contract is a statutory lien - because it runs with the land under State non-bankruptcy law -- then post-petition dues and assessments are not discharged and continue to be payable in accordance with State non-bankruptcy law and/or the CC&Rs. That is that they are treated just like any other lien (and not a contract). So, the angst should be with your State legislators and how they treat HOAs and CAs.

As for "we are above the law", they can only do what's provided by state law and in the CC&Rs which are, in fact, the "laws" of the condominium/homeowner's association. Since they write the CC&Rs, then you are subject to their "rules" (i.e. the covenants, conditions and restrictions) as you mortgaged the property subject to the rules (the "Planned Unit Development" or other Rider).

In Florida, they enjoy a super-priority lien, but most CC&Rs subordinate their statutory super-priority lien to a first mortgage and governmental taxes.

In fact, some debtors in Florida have been able to void (strip) the liens of HOA/CAs by filing a Motion to Avoid Lien in both Chapter 7 and Chapter 13 cases! The HOAs have cried fowl and, as you elude, say that they are "above the law", meaning they have a super-priority lien. However, most CC&Rs subordinate the statutory super-priority lien to the first mortgage and governmental taxes. Thereby making their lien, in some cases, wholly unsecured and subject to being stripped off! They hate it! I love it! Lien stripping is alive and well for both Chapter 13 and Chapter 7 cases in Florida. (It is also available in the 11th Circuit which includes Alabama and Georgia. The Supreme Court may eventually grant certiorari (certification) and review the In Re Mcneal case (McNeal v Bank of America) and determine whether the Supreme Court precedence in Dewsnup actually applies or extends to wholly unsecured claims (liens).)

[tobee43]

lets not forget the cost of what an education cost and what it brings to the table after you complete it.

in the old days, LITR, i don't know if you remember but a law degree from bolt or ucb was the cost of a nice party dress for the season. the costs and outcomes of what an education is worth is the real question here. there was a time all those degrees helped one get ahead in life, now they only hurt you. oh! you are well to educated for that job, or the new one for our teachers, what??? you have a masters degree, well you can't get hired as our state mandates you must be hired at a higher level of pay and our funds have been cut so harshly no way can we afford to "better" educate our students with more qualified teachers, oh no!!!

so many hopes and dreams have been crushed for a better future because someone has a degree. so hurry on up and get that degree where six months when it's time to start paying back those loans and you are dishing out coffee for 50 cents an hour with a pay back based on your salary, will be what the determining payback institution will base your pay back amount on the tips you get or serving that coffee. when will it ever end?

can't all blame the government, after all we voted them in, of course mostly based on lies and cheats, but i guess they got a better education! they learned to lie and cheat better, what a shame!