The Real Deal Miami

Condo association bankruptcies rise

July 14, 2009 01:45PM

The recent bankruptcy of the Maison Grande condominium association reflects a growing problem with association finances, and is the seventh such crunch since the peak of the housing market. Chapter 11 filings are seen as a desperate move, but filing for protection keeps the water flowing, the gas turned on and the power connected. Last month, Legacy Park townhome association in the Central Florida city of Davenport filed for Chapter 11. It owes cable provider Comcast $105,305, among other creditors. Bankruptcy attorney Thomas Lehman says associations need exit strategies to succeed in these reorganizations.