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Depending on the state of the project at filing time, there may be several options.

First, if there are owners involved who have purchased units, especially those with mortgages, those entities should have consideration under the bankruptcy filing.

Second, the developer, if there have been buyers, must have supplied a Public Offering Statement that contained the original governing documents for the association. An association-savvy attorney can help owners work through their options given these documents.

Finally, state law, governing documents and mortgage lenders will all have an interest that the legal community will handle. If your unit is uninhabitable because of the lack of basic services, your HO-6 insurance policy may cover your residence at its expense, possibly up to a cap. Your broker will explain your options.

There is no standard for how these matters are handled, since every condominium community is unique, different and individual.

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Q: What happens if the builder of a condominium project files bankruptcy?
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