Certified Manager Of Community Associations (CMCA) Exam

Access More Questions

A homeowner who is several months behind on assessment payments files for Chapter 7 bankruptcy. What is the immediate effect of this filing on the association's collection efforts for the past-due amounts?

The association can accelerate the collection process and proceed with foreclosure immediately. An 'automatic stay' is imposed, which legally requires the association to halt all collection activities for the pre-petition debt. The homeowner's debt to the association is immediately forgiven, and future assessments are also waived. The association must contact the homeowner directly within 10 days to negotiate a settlement.

Correct Answer:

An 'automatic stay' is imposed, which legally requires the association to halt all collection activities for the pre-petition debt.

Access more questions from this quiz

Continue to Certified Manager of Community Associations (CMCA) Exam for more practice questions and the full quiz experience.

Access More Questions