The U.S. Bankruptcy Code

The automatic stay stops collection

Filing triggers the automatic stay (§ 362) — the HOA must immediately stop lawsuits, lien foreclosure, demand letters, and other collection. This applies even to debts that will not be discharged. Violating the stay can expose the HOA to damages (§ 362(k)). The HOA can ask the court for relief from stay.

What is wiped out — and what survives

• Pre-filing assessments — the owner’s personal liability is generally dischargeable (unsecured debt).
• A recorded lien survives. Discharge ends personal liability, but a valid pre-filing assessment lien rides through as an encumbrance on the property (in rem) and can be enforced against the home afterward.
• Post-filing assessments — § 523(a)(16) are not discharged for as long as the owner keeps a legal, equitable, or possessory interest in the unit. While you still own or occupy, ongoing dues must be paid.
• Chapter 13 lets an owner cure arrears over a 3–5 year plan while staying current.

A live circuit split

Unsettled: in Goudelock v. Sixty-01 (9th Cir. 2018) the court held § 523(a)(16) is a Chapter 7 exception and does not block discharge of post-petition assessments in Chapter 13 — so they were discharged there. Treatment of post-filing assessments in Chapter 13 varies by jurisdiction; § 523(a)(16)’s clearest force is in Chapter 7. Also, assessments keep accruing until title actually transfers — moving out or “surrender” is not the same as ending ownership.

Arizona law on the same topic

• A.R.S. § 33-1807 — Arizona: HOA liens & foreclosure

Primary sources

• 11 U.S.C. § 362 — automatic stay
• Goudelock v. Sixty-01 (9th Cir. 2018)

This is general information, not legal advice. Federal law changes and the courts are still working out several of the points flagged above as unsettled. Verify anything you rely on, and talk to a lawyer about your specific situation.