Nonprofit HOA May Use Subchapter V To File Small Business Bankruptcy Plan
Court says HOA is “engaged in commercial or business activities” and may use simplified process for reorganization plan
The 11th Circuit Court of Appeals has held that subchapter V of the Bankruptcy Code, as adopted by the Small Business Reorganization Act of 2019, may be utilized by a nonprofit homeowners’ association to provide a reorganization plan even though the debtor is not organized or operated for profit.
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