Condo Association Management Blog

if there only a few of you then why not move to disolve? 
sounds like if half of you decide to stop paying then you will go bankrupt. 
i think the city or county steps in and takes over. you will have water and power but no pool or landscaping. 

Dear Poster, 
 
The answer is yes. An HOA is considered a legal corporation and therefore, faces the same faith as any other company would. So, once you are unable to pay your water or electric bills, those companies will stop providing services. If you owe money to any of your vendors, then they will seek collection and possibly lawsuits to get their money owed to them. If they win the lawsuit, then the courts have automatically increase the assessments to an amount necessary to pay everyone off.  
 
That's why it is so important to have a good management company working with you, to help mitigate such problems and keep your HOA solvent.www.unyglobe.com 
 

Forewarned is forearmed. Good adage but not pertinent to this blog. Thos who read this blog have a problem that requires a solution right now. It os too late to forewarn them. Those who don't have a problem don't read this blog so forewarning does no good at all. It just clutters up this blog,

I disagree with Scott. As a newer Director on our HOA, I have read several of the previous blogs and keep up with the new ones. They keep me on my toes so we can keep from failure. We now have a good reserve and have done a reserve study, we have studied our bylaws, have hired a management company for the books and have accomplished several other things. This has all transpired in the past year and many of the ideas to clean up a beginning to get messy association has been organized by all your comments. I truly thank you.

Hello: 
 
I'm not an attorney nor do I pretend to know what I'm talking about...seek the competent advice of a bankruptcy attorney in this area for your specific legal needs. 
 
Now, my laymen's understanding is that yes an HOA or COA could go bankrupt. 
 
From my experience, Fernando was probably the most accurate. The vendors of the association would likely sue to obtain payment. When payment wasn't made, they'd pursue a judgment which would be attached to every house, and possibly every member, in the association. After that, it depends on how good the attorney or the collection agent is at collecting on that judgment. 
 
You must remember, that in some states you as an owner of the corporation are responsible for it's bills if the corporation can't pay. Read up on your statutes and talk with that lawyer. You're entering a precarious legal position and you want to make sure you have all of the facts about your case. 
 
Darron Hay 
 
Assessment Recovery