My Homeowners Association has posted my Houston home for foreclosure. Can I stop it by filing for chapter 13 bankruptcy?

Yes. Filing chapter 13 bankruptcy can stop a homeowner's association from foreclosing on your home. But the chapter 13 must be filed before the foreclosure to make sure it is stopped (there is a limited redemption right after the foreclosure takes place, but why wait?). Even if the HOA has a court judgment of foreclosure against you, it can still be stopped so long as you don't wait too long. Don't wait!

Assuming that you have regular income, you qualify for chapter 13, and can otherwise afford your home, you can propose a chapter 13 plan to repay the HOA over the term of the chapter 13 plan, which is 3 to 5 years, together with some interest. This can make it very affordable for you, and allow you to keep your home.

 

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization