In a significant reversal of current case law, the 9th Circuit Court of Appeals recently ruled that post-petition HOA assessments are dischargeable in a chapter 13 bankruptcy case.
The opinion, in Goudelock v. Sixty-01 Ass’n of Apartment Owners, 895 F.3d 633 (9th Cir. 2018), was handed down July 10, 2018. The Court held that the obligation to pay assessments arises when a property is purchased, and the ongoing monthly assessments are simply a contingent or unmatured form of the debt. In so doing, the Court concluded that the debtor/owner’s obligation to pay future assessments is dischargeable under Chapter 13 of the Bankruptcy Code. The Court did note that a community association’s ability to obtain stay relief and foreclose remains unaffected. (more…)Read More