According to recent statistics, there are 342,000 community associations (including homeowners’ associations and condominium associations) in the United States. Approximately 69 million Americans—21% of the United States population—live in community associations. The state with the most community associations is Florida, with over 47,900 associations. Last year, over 750,000 bankruptcy cases were filed in the United States. Therefore, it is only natural that a significant number of owners of properties in community associations are filing bankruptcy. When that happens, the collision of community association law and bankruptcy law can create unpleasant pitfalls for associations.

It is important for these associations to have counsel that recognize these dangers, who is well-versed in both community association law and bankruptcy law. Associations enjoy certain privileges under the U.S. Bankruptcy Code, but there are several instances where their rights can be waived if they do not participate in the bankruptcy case.