Florida Condo And Homeowner Associations Filing Chapter 11 As A Last Resort: "Last year, we began to see that condo associations in Florida were facing trouble. With many condo owners not paying their fees or facing foreclosure it was inevitable that the condo and homeowner associations would only be able to go on so long. The Miami Herald is reporting that with those fees remaining unpaid some South Florida condo associations are seeing bankruptcy as a way out. So far at least seven Florida condo associations have filed for bankruptcy and there could be many more to follow.
The lure for the associations is that if they are in bankruptcy the utilities they owe money to can't turn off basic services like water and power. The downside may be that it is both costly and only a stopgap measure."
Yes, and as the article notes, unlike bankrupt businesses, they don't have assets to sell off.