Bankruptcy Indiana

Bankruptcy judges have the power to “discharge” debts, but, as I’ve often cautioned readers of these Bankruptcy in Indiana articles, there are some debts that, under the new bankruptcy laws of Indiana, cannot be forgiven.

The most well-known examples of bankruptcy “cant’s” include:

•  Child support and alimony payments
•  Most student loans
•  Certain taxes
•  First mortgage arrears
•  Criminal or other legal penalties and fines

There’s one kind of debt related to filing personal bankruptcy in Indiana that isn’t so well-known, and it involves condo or homeowners’ association fees in bankruptcy Chapter 7 .  As a longtime debt consolidation lawyer offering bankruptcy services in Indiana, I’ve found that few clients realize that their monthly fee is one obligation that can’t be forgiven through filing Chapter 7 personal bankruptcy in Indiana.

The subject of delinquent homeowners’ fees is actually a subject that comes up quite often in the work we do in the Zuckerberg bankruptcy law offices to help stop foreclosure.

As Susan Jenkins points out in BroadNeck Patch, the homeowners’ association has the law on its side and can sue a homeowner (even one who’s vacated the property) for unpaid monthly fees. While this unpleasant legal fact is not commonly known by homeowners, all the good bankruptcy attorneys in Indiana who are my colleagues are very aware of the law and take condo and homeowner fees into account when filling out the list of expenses and debts as part of the process of filing bankruptcy.

In many locations, including the Indianapolis, Anderson, Columbus, and Bloomington, Indiana areas where I practice law, joining the homeowners’ association is mandatory when purchasing a home or condo.   In the event the fees are not paid, the association could sue, and then legal fees would add to the money owed on back payments.

As a certified consumer bankruptcy specialist, I understand that it all comes back to the importance of dealing with debt early on, rather than putting off facing financial problems.  Condo fees, it turns out, are one of the few but important “can’ts” in the bankruptcy “can”!