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The Impact of Bankruptcy on HOAs

The Impact of Bankruptcy on HOAs

HOA | Condo Board Responsibilities and Education, HOA | Condo Communication, HOA | Condo Board and Annual Meetings

Bankruptcy is a tool that corporate entities and individuals may use to restructure or escape certain debts. A corporation or an individual may file for bankruptcy as frequently as every eight years. 

A homeowners association, or HOA, is funded by homeowners in the community. The residents pay a monthly fee, and the money is used to run the association much like a business. Unfortunately, this means that when a homeowner becomes delinquent, the HOA could have problems. And when owners file for bankruptcy, the association becomes one of their creditors. 

By Benjamin Yaeger on Jun 24, 2021 10:00:00 AM
   
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