In re Coonfield, 517 B.R. 239

In 2008, the Coonfields purchased a Lake Bellevue Village condo subject to a HOA lien and a Bank of America deed of trust.
The couple abandoned the condo in 2012 and stopped paying HOA assessments, but they retain legal title since there has been no foreclosure.
They filed a July 2014 Chapter 13 petition proposing a plan to transfer title to Bank of America and omit ongoing HOA payment provisions.
Bank of America and the HOA object to the title transfer; the HOA also objects to the absence of ongoing assessment payments in the plan.
The court resolves whether the debtors can force title transfer and whether the plan can be confirmed without providing for ongoing assessments.
The court concludes transfer cannot be forced and that ongoing assessments may be dischargeable under 11 U.S.C. § 1328(a).

Issue	Plaintiff's Argument	Defendant's Argument	Held
Can debtors force transfer of title to Bank of America?	Coonfields seek title transfer to satisfy the plan.	Bank of America need not accept title; transfer requires consent.	Debtors cannot force transfer; lender must accept if willing.
Must the plan provide for ongoing HOA assessments to be dischargeable?	HOA contends ongoing assessments must be paid while title remains with debtors.	Plan need not provide for ongoing assessments if dischargeable under §1328(a).	Ongoing assessments may be discharged under §1328(a); plan need not include them.

Foster v. Double R Ranch Ass'n (In re Foster), 435 B.R. 650 (9th Cir. BAP 2010) (you stay, you pay; distinguish cases where debtor surrenders condo)
Pennsylvania Dep’t of Pub. Welfare v. Davenport, 495 U.S. 552 (1990) (broad definition of 'debt' and dischargeability principles for §523(a))
Johnson v. Home State Bank, 501 U.S. 78 (1991) (Congress amended dischargeability without narrowing 'claim' definition)
Siegel v. Fed. Home Loan Mortg. Corp., 143 F.3d 525 (9th Cir. 1998) (when a debt arises under bankruptcy law; governs timing of 'claim')