U.S. Bankruptcy Court Says HOA Lien Gets Limited Priority in Chapter 13

U.S. Bankruptcy Court, District of New Jersey, decision (June 11, 2015)

In this case, husband and wife homeowners were the debtors in a Chapter 13 bankruptcy proceeding. At the time of the filing of the Chapter 13, the debtors owned a condominium and were part of a homeowners association in which they were required to pay various fees and assessments as specified in the association’s governing documents. When the Chapter 13 was filed, the debtors owed the association in excess of $14,000.00 for their share of fees and assessments to the owners that were never paid. In their bankruptcy filing documents, the debtors stated that […]