(Unpublished) - In re Smart, Case No. 14-14147 ABC, Docket #66 (Bankr.D.Colo. January 27, 2015) 11 U.S.C. §1325(a)(5)(C); surrender of real property and post-petition homeowner association assessments.

Chapter 13 debtors proposed a plan which surrendered real property to the creditors holding an interest in the real property, including a homeowners' association ("HOA"). The HOA objected to confirmation of debtors' Chapter 13 plan because the debtors did not propose to continue making the ongoing postpetition monthly homeowners dues. The HOA contended debtors were obligated to do so as long as debtors owned the real property. The HOA argued that the postpetition assessments are a personal obligation of the debtors, a covenant running with the land, and nondischargeable.

This Court overruled the HOA's objection concluding that surrendering the real property to the creditors holding an interest in the real property, including the HOA, was among the treatment options available to debtors under section 1325(a)(5). Having so provided for the secured creditors and there being no other statutory impediment to confirmation cited by the HOA or found by the court, Judge Campbell confirmed debtors' plan. The Court also observed that it was premature to consider whether any unpaid postpetition homeowners assessments were nondischargeable.