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.
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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 …
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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. |
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Legal references last verified August 5, 2026.
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