With the recent proliferation of condominium foreclosures and owners becoming delinquent in their monthly assessments, many South Florida condominium associations are experiencing difficulties in paying their bills and have thus considered the bankruptcy option. While it’s not the norm for condominium associations to file Chapter 11 bankruptcy, it is a recourse that has increased in the past several years, particularly in overbuilt markets such as Miami and throughout South Florida. The point at which associations begin considering bankruptcy relief is when the remaining owners in the community are forced to cover far more than their proportionate share of the assessments, resulting in even more owners falling delinquent. As a result, lawyers who focus on bankruptcy matters for condominium associations and homeowners associations have become an invaluable resource for these community associations that had traditionally been able maintain solvency and avoid bankruptcy filings.
The recession and slow pace of economic recovery have taken a heavy toll on the finances of individuals in South Florida and throughout the country. With many finding themselves forced to file for bankruptcy, the wave of personal bankruptcies has exacerbated the financial difficulties at condominium associations and HOAs that were already struggling with their collection efforts due in large part to the foreclosure epidemic. As a result, the community association lawyers in South Florida at our firm and throughout the state have been working closely with their clients to help them to contend with unit owners who seek bankruptcy relief.