Which act clarified that associations have the authority to collect assessments that come due after a homeowner files for bankruptcy?

• A. The U.S. Bankruptcy Code.
• B. The Fair Debt Collection Practices Act.
• C. The Uniform Fraudulent Transfer Act.
• D. The Truth in Lending Act.

Answer: (A)

The concept being tested is how bankruptcy affects ongoing obligations for homeowners associations. When a homeowner files for bankruptcy, debts that existed before filing may be discharged, but obligations that arise after filing—such as assessments coming due post-petition—are treated differently and are generally still collectible. The law that clarifies this is the U.S. Bankruptcy Code. It governs how debts are discharged and how post-petition obligations are handled, explicitly allowing associations to collect assessments that accrue after the bankruptcy petition is filed. This is in contrast to the other acts, which address debt collection practices (Fair Debt Collection Practices Act), fraudulent transfers (Uniform Fraudulent Transfer Act), or lending disclosures (Truth in Lending Act) rather than the treatment of post-bankruptcy assessments.