Homeowners’ HOA Dues Accruing After Filing of Chapter 13 Were not Dischargeable

UNPUBLISHED United States Bankruptcy Appellate Panel of the Ninth Circuit decision (December 1,2015).

In this case, a husband and wife attempted to discharge their liability for over $26,000 in unpaid homeowners’ association dues on an investment condominium that they owned which accrued after they had filed a Chapter 13 bankruptcy. In a Chapter 13 Plan that the owners filed, they: (i) did not provide for any payments to their HOA for the unpaid assessments; (ii) provided for surrendering possession of the condominium unit to their secured lender that held a mortgage on the unit; and (iii) granting secured creditors relief from the automatic stay caused by the bankruptcy filing to enforce their security interests, including taking possession and sale of the condominium unit.