11 U.S.C. §362
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Bankruptcy Code — Automatic Stay

Imposes an automatic stay on collection actions when a debtor files for bankruptcy. HOAs must cease assessment collection efforts upon notice of a bankruptcy filing.

Status Active
Verified Aug 5, 2026

Reviewed · Federal changes feed

Statutory Text Verified Aug 5, 2026 · OTHER
Quick search by citation: 11 U.S. Code § 362 - Automatic stay prev | next (a) Except as provided in subsection (b) of this section, a petition filed under section 301 , 302 , or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970 , operates as a stay, applicable to all entities, of— (1) the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; (2) the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; (3) any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; (4) any act to create, perfect, or enforce any lien against property of the estate; (5) any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; (6) any act to collect, assess, or recover a claim against the debtor that arose before the commencement of the case under this title; (7) the setoff of any debt owing to the debtor that arose before the commencement of the case under this title against any claim against the debtor; and (8) the commencement or continuation of a proceeding before the United States Tax Court concerning a tax liability of a debtor that is a corporation for a taxable period the bankruptcy court may determine or concerning the tax liability of a debtor who is an individual for a taxable period ending before the date of the order for relief under this title. (b) The filing of a petition under section 301 , 302 , or 303 of this title, or of an application under section 5(a)(3) of the Securities Investor Protection Act of 1970 , does not operate as a stay— (1) under subsection (a) of this section, of the commencement or continuation of a criminal action or proceeding against the debtor; (2) under subsection (a)— (A) of the commencement or continuation of a civil action or proceeding— (i) for the establishment of paternity; (ii) for the establishment or modification of an order for domestic support obligations; (iii) concerning child custody or visitation; (iv) for the dissolution of a marriage, except to the extent that such proceeding seeks to determine the division of property that is property of the estate; or (v) regarding domestic violence; (B) of the collection of a domestic support obligation from property that is not property of the estate; (C) with respect to the withholding of income that is property …
Enforcement
Ref Requirement
§523(a)(16) Filing Chapter 7 does not wipe out HOA assessments that come due after the petition — only those owed at the time of filing. As long as the debtor still owns the unit, new assessments keep accruing and are collectible.
(a) The moment an owner files bankruptcy, the HOA must stop all collection: no more letters, calls, lien recordings, lawsuits, or foreclosure sale dates. Violating the stay can mean damages, attorney fees, and sanctions.
(c) The HOA cannot lift the stay on its own. It must wait until the bankruptcy case ends — or file a motion for relief from stay with the bankruptcy court and obtain an order before resuming collection.
Legal references last verified August 5, 2026. This content is educational and informational. It does not constitute legal advice. Consult a licensed attorney in your state for legal guidance specific to your situation.
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