438 Files for Chapter 11

438's president announced yesterday

"We will soon be filing for Chapter 11 bankruptcy."

Members of the association attribute the financial crisis to inappropriate macroeconomic policy during the last quarter of 2005 and the first quarter of 2006. Members also argue that the crisis began with the failure to collect condo fees during the rein of it's first president.

"Basically, we haven't been paying any condo fees."

reports an anonymous member of the association.

Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.