Bankruptcy discharge of HOA fees.

Chalk one up for Debtors -- HOA fees ARE dischargable in Chapter 13 In a memorandum decision, Judge William T. Thurman, the Chief Judge for the Bankruptcy Court for the State of Utah held that fees and assessments of a home owners association are dischargable under Chapter 13 if the debtor receives a "full compliance" discharge. Red Rock Legal Services represented the debtors in this case where an HOA in St. George, Utah attempted to have the automatic stay modified or a finding made by the court that the stay did not apply at all to the claim of the HOA. This would have allowed them to attempt to collect on the HOA fees/assessments in state court by seeking a judgment against the debtors. St. George Utah bankruptcy firm Red Rock Legal Servcies objected to the request on the basis, supported by the court's opinion that the HOA's claim was one that was addressed as a claim in the debtors' plan and that a review of the statute indicated that the exemption to discharge of post-petition HOA fees/assessments found under 11 U.S.C. sec. 523(16) did not apply to a case of a discharge under 11 U.S.C. sec. 1328(a). We will update with a link to the opinion as soon as the court has it uploaded to its site. However, if you would like to get a copy in advance, email me and I would be happy to send you a copy.