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Can a HOA file bankruptcy?

Naples, FL |

What happens when a HOA files for bankruptcy? In light of the current realestate disaster, I have heard so much about HOA's and their money problems. How can I find out if my HOA is still solvent? Are homeowners made aware?

Attorney Answers 1

  1. As with all corporations, an HOA can file for bankruptcy relief.

    As for solvency concerns, you have the right to examine the HOA financial documents. Reasonable notice of your request must be provided--just dropping in at the treasurer's home is not how to proceed.

    Also, I suggest that if you haven't already, start attending the meetings of the Board of Directors so as to hear the Treasurer's report, follow the issues being discussed, and perhaps to ask the questions that you have.

    Good luck.