My HOAs' CC&R's expired in 2009. HOA is currently in CH 11 bankruptcy court and a trustee has been appointed due the boards' mismanagement. Lawsuits filed against members of the board and D&O policy. The BK costs including creditors and trustee/attorney's cost are now in the hundreds of thousands. Will individual homeowners be liable for any claims/costs of the BK as we did not renew the CC&'rs and will not revitalize?
Maybe, maybe not. Someone would certainly need to make that argument on behalf of the homeowners. Bankruptcy trustees/lawyers dont always know everything about all areas of law; as most lawyers dont.
