Kostopoulos Bankruptcy Law

Tag: Chapter 7

Does Bankruptcy Discharge HOA Fees in Michigan?

Posted on by Rita Kostopoulos

Homeowner Association (HOA) and Condo Association (COA) fees can feel like an inescapable burden when you are already struggling with debt. For Michigan homeowners considering bankruptcy, a crucial question is whether filing for Chapter 7 or Chapter 13 will finally wipe out these ongoing assessments.

The Short Answer for Michigan Debtors:

Yes, Chapter 7 bankruptcy can discharge your personal liability for past-due HOA or condo fees that came due before you filed your case (pre-petition debt). However, under U.S. Bankruptcy Code 11 U.S.C. § 523(a)(16), fees that come due after you file (post-petition debt) are generally not discharged for as long as you legally own the property, even if you intend to surrender it.

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Does a Chapter 7 bankruptcy completely eliminate my HOA or condo association fees in Michigan?
No, a Chapter 7 bankruptcy only discharges your personal liability for fees and assessments that became due before the date you filed the petition (pre-petition debt). Any fees that accrue after the filing date (post-petition debt) are generally not discharged, pursuant to 11 U.S.C. § 523(a)(16), for as long as you retain legal title to the property.
If I surrender my home in Chapter 7, am I still responsible for post-petition HOA fees?
Yes. Stating your intention to "surrender" the property in bankruptcy does not automatically transfer legal title. You remain personally liable for all HOA or condo fees that come due after your filing date until the property is officially transferred out of your name—typically through a foreclosure sale by the mortgage lender or an accepted Deed in Lieu of Foreclosure.
Does the HOA’s lien for unpaid fees survive a bankruptcy discharge in Michigan?
Yes, the HOA or condo association's lien on the property itself survives both Chapter 7 and Chapter 13 bankruptcy. While the bankruptcy may eliminate your personal obligation to pay the pre-petition debt, the lien remains attached to the property. This means the association can still enforce the lien later, potentially through a judicial foreclosure sale, even if the mortgage is also underwater.
How do I handle ongoing HOA fees if I keep my home in a Chapter 13 bankruptcy?
If you elect to keep your home in a Chapter 13 plan, the plan will address the pre-petition arrearages (past-due fees), paying them off over the 3-to-5-year term. However, you are separately required to make all current monthly HOA or condo assessments directly to the association on time. Failure to pay current fees could result in the association asking the bankruptcy court to lift the automatic stay.
Can a Michigan HOA foreclose on my property if my personal debt was discharged in bankruptcy?
Yes, an HOA or COA can pursue a non-judicial or judicial foreclosure on the property to enforce its surviving lien. Even if your personal debt for the fees was discharged, the lien itself is an encumbrance on the property. If you fail to pay the fees that accrue after the filing date or the debt secured by the surviving pre-petition lien, the association can move to foreclose on its interest in the property.

Can You Wipe Out Medical Debt in Chapter 7 Bankruptcy in California?

Posted on by Rita Kostopoulos

You may be wondering: “Can You Wipe Out Medical Debt in Chapter 7 Bankruptcy in California?”

Yes, you can wipe out (discharge) medical debt in a Chapter 7 bankruptcy in California. Medical bills are considered an unsecured, non-priority debt, making them eligible for discharge along with other unsecured debts like credit card balances and personal loans.

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Frequently Asked Questions

Does Chapter 7 wipe out ER and hospital bills
Yes, ER, hospital, specialist, and lab bills are typically dischargeable unsecured debts.
Will medical collectors stop calling?
 Yes—once you file, the automatic stay stops most collection contact.
Can I keep my car and household items?
 In many cases, yes—California exemptions protect essential property when properly selected.
What if I recently got a raise?
 Your means test may change; your lawyer can run updated calculations and consider Chapter 13 as a fallback.

Can You Refile Bankruptcy After a Dismissal in California?

Posted on by Rita Kostopoulos

If your bankruptcy case in California was dismissed, you may wonder if you can file again. The answer is Yes, you can refile for bankruptcy in California after a dismissal, but the timeline and conditions depend on the reason for the original dismissal. In some cases, you can refile immediately, while others require a 180-day waiting period. There are also specific limitations on the automatic stay, which temporarily prevents creditors from collecting debts

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Can You Eliminate Business Debts with Personal Bankruptcy in California?

Posted on by Rita Kostopoulos

You may be wondering: “Can You Eliminate Business Debts with Personal Bankruptcy in California?”

In California, a personal bankruptcy can eliminate business debts for which you are personally liable, but the result depends heavily on your business’s legal structure. While a personal bankruptcy can discharge your personal responsibility, it does not erase the debts of a separate legal entity like a corporation or LLC.

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Can I Keep My Motorcycle After Chapter 7 in Michigan?

Posted on by Rita Kostopoulos

If you rely on a motorcycle for commuting, work, or weekend rides, the idea of losing it in bankruptcy can be stressful. Michigan riders filing Chapter 7 often want to know whether a trustee can take the bike or whether there are lawful ways to protect it. The answer depends on your equity, exemptions, and how the loan is handled.

Yes—many Michigan filers can keep a motorcycle in Chapter 7 if the bike’s equity is fully covered by exemptions and they either stay current on a reaffirmed loan or redeem the vehicle. If equity exceeds exemptions or payments lapse, the trustee or lender may take it.

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Can Personal Loans Be Included in Bankruptcy in California?

Posted on by Kostopoulos Bankruptcy Law

Yes, personal loans can be included in bankruptcy in California, and they are usually dischargeable. This includes personal loans from banks, credit unions, friends, family, or employers. Unsecured personal loans, which are loans not backed by collateral, are eligible for discharge in both Chapter 7 and Chapter 13 bankruptcies.

Filing bankruptcy in California involves understanding the types of debt dischargeable, assets and exemptions, eligibility criteria, credit impact, costs, legal procedures, and the role of a bankruptcy lawyer in guiding individuals through the process.

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Top FAQs About Personal Loans and Bankruptcy in California

Can personal loans be discharged in bankruptcy?
Yes, personal loans can be discharged in bankruptcy, especially unsecured ones like credit card debt and medical bills under Chapter 7 bankruptcy, but secured loans may require surrendering collateral or reaffirming the debt.
What is the difference between secured and unsecured personal loans in a bankruptcy context?
In a bankruptcy context, the main difference between secured and unsecured personal loans is the presence of collateral. Secured loans are backed by collateral, which can be claimed by the lender if payments are not made, while unsecured loans do not have collateral. Unsecured debts are often discharged in bankruptcy, while failing to make payments on secured debts may lead to the loss of collateral.
Are there any debts that cannot be discharged through bankruptcy?
Yes, debts like alimony, child support, student loans, and specific tax obligations generally cannot be discharged through bankruptcy.
How can I rebuild my credit after filing for bankruptcy?
To rebuild your credit after filing for bankruptcy, you can obtain secured credit cards, use credit-builder loans, keep credit utilization low, make timely payments, regularly review credit reports, and consider becoming an authorized user on a stable account. These steps can contribute to improving your creditworthiness and financial stability.
WWhy is it important to work with a bankruptcy attorney when dealing with personal loans in bankruptcy?
Working with a bankruptcy attorney when dealing with personal loans in bankruptcy is important because they ensure accurate documentation, provide expert financial advice, and help navigate the complex process, ultimately leading to the best possible financial outcome.

What Are the Common Mistakes to Avoid When Filing for Bankruptcy in California?

Posted on by Kostopoulos Bankruptcy Law

Filing for bankruptcy is a significant financial decision, and making mistakes in the process can have serious consequences. So, what are the common mistakes to avoid when filing for bankruptcy in California?

The most common mistakes include transferring assets before filing, taking on new debt, cashing out retirement funds, failing to disclose financial details, and waiting too long to file. Avoiding these missteps can protect your case and maximize your financial relief.

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FAQs About Bankruptcy Mistakes in California

What can you not do after filing bankruptcies?
In Chapter 7 and Chapter 13, obligations pertaining to current taxes, spousal maintenance, child support payments, and judicial directives cannot be eliminated. You might lose the privilege to retain specific properties, credit cards, or bank accounts, and acquiring loans will necessitate authorization from the court after declaring bankruptcy.
Does my debt go away when I declare bankruptcy?
When you file for bankruptcy, it can serve to clear away most unsecured debts. Not every type of debt might be forgiven through this process, such as secured debts like your mortgage.
Who loses money first in a bankruptcy case?
During bankruptcy proceedings, the initial financial losses are absorbed by secured creditors, which usually include banks and lenders. Unsecured creditors are next in line to face losses, and these may be banks as well as suppliers. Stockholders stand at the end of the queue when it comes to asset claims.

Consequently, if there’s insufficient repayment to cover other creditors’ claims fully, stockholders might end up without any compensation from the remaining assets.
What is the 90-day rule for bankruptcy?
Under the 90-day rule in bankruptcy, if you disburse over $600 to a creditor in the period of 90 days preceding your filing, the trustee overseeing Chapter 7 has the authority to demand that said creditor refund those monies.
What happens if I don't disclose all my assets when filing for bankruptcy?
When you are filing for bankruptcy, it is imperative to reveal all of your assets. Concealing any could lead to a refusal of debt relief, the possibility of having an approved discharge later revoked, or facing criminal prosecution.

To prevent these adverse outcomes, exercise completeness and honesty in your disclosure.

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