Chapter 7 Bankruptcy Az, Reaffirmation Denied

[Driskell]

I filed Chapter 7 BK in September of 2009 in the state of AZ. I had 2 homes and 2 cars at the time. I moved into one home and kept one of the vehicles and let go of the other home and vehicle. I tried to do reaffirmation for my current home and car and was denied for car. I was advised by the lender for the home, Chase, that they did not do reaffirmations. My bankruptcy was discharged in April of 2010 and I continued to still pay on the vehicle and home that reaffirmation was denied for and was told by the lenders could stay in home and keep vehicle as long as I kept paying. During bankruptcy my hours at work were cut from full time to part time and I barely was able to get another full time job as of May 2011. I am struggling and fell behind on mortgage and car make payments and I am slowly going back into debt. First issue - My question is if I let go of vehicle and home currently in, are the lenders able to come after me for anything? And if not will home count as earned income for tax purposes, such as the 1099 or will state come after me? I did represent myself and do not have an attorney. Other issue - My first home that I let go in bankruptcy had an HOA and they are now suing me for HOA fees. Is there anyway to fight this?

[Earnan]

These are the problems you have when you don't have an attorney to represent you, unfortunately.

First of all I never reaffirm home mortgages and luckily you were not able to do so;  so if they foreclose you're off the hook as the bk would have discharged any possible personal liability.

The vehicle is the same;  if you didn't reaffirm the debt is discharged and while they can repo any time they want, if you're current, many lenders won't.

HOA goes after the owner and if the bank took its time foreclosing, you're on the hook for HOA dues arising after the bky until the bank took over.   You can always answer and deny liability but ultimately they'll probably win.

I also don't believe letting the current home go will result in a taxable event for you as it's your residence.

Good luck!

Lee Horner

Goldstein, Horner & Horner, Tucson

www.FreshStartAZ.info