In SA TX, HOA Lawyer received judgement for unpaid hoa fees. Now for $450 in past due hoa fees, Attorney wants 3,000. House is scheduled to be auctioned off in 1 week.
Now I'm past due on mortgage (house is upside down$$) and planned to file chapter 13 in about 3 months. I cannot due it now, but definitely will in 3 months.
I'm being offered a payment plan. $1000 down & $150 a month for 1 year.
I'm really hurting right now and if I paid the $1000 it would leave me flat broke.
My 2 questions:
1. Can I let them auction home since I'm filing chapter 13 anyway. Another words can I still recoup it or get it back 3 months later, since they only have a $3k lien ?
2. If forced to do payment plan and later file chapter 13, is the balance on payment plan washed out?
2 Answers from Attorneys
If the HOA tries to foreclose, they must wait until your lender is paid. If the mortgage is upside down and you owe more than the value of the house, the HOA gets nothing. The HOA will still have a judgment against you. If you later file bankruptcy, that judgment may be discharged.
When file bankruptcy, you essentially make a deal to discharge your debt. If you file Chapter 7, you give up all of your exempt, unsecured assets to discharge all of your debt. You can exclude some debts, such as your mortage from the bankruptcy.
If you file chapter 13, you keep your assets but must agree to pay off the debts over time (usually 5 years). The balance on the payment plan may or may not be discharged depending on the terms of you plan.
You need to consult a bankruptcy attorney to help you navigate this complex process.
You must file immediately. You cannot use the bankruptcy to "recoup" the house after it's foreclosed. Your rights in the property will be extinguished by the foreclosure, and once gone cannot be reinstated.
Their are plenty of lawyers around San Antonio that will take your case for "0.00 down" with the balance paid through a trustee as part of a payment plan. you might try http://www.rjabankruptcy.com http://www.superdebtbuster.com
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