Confused about paperwork

[annalynn]

I owe my HOA nearly 8000 dollars and was told by my attorney that my chapter 7 would wipe away this debt (although I realize that I am liable for all dues incurred AFTER the filing).

Today when I was looking over the paperwork--it said reaffirmation and had my HOA listed. I thought that a reaffirmation meant that I would pay off the debt? (In this case the $8000 debt that I am hoping will be forgiven).

Or in this case, does it just mean that I will pay what comes due in the future?

[LadyInTheRed]

Are you saying that your statement of intentions indicates that you will reaffirm the debt?

An intention is just that: an intention. You can change your mind. A debt is only reaffirmed after you and the creditor sign a reaffirmation agreement and you file it with the court. Your attorney has to sign a certification that reaffirmation is not a hardship for you or the judge has to approve it. Even if it gets to the judge, if you don't want the reaffirmation approved, it probably won't be. But it won't get to the judge if you don't sign a reaffirmation agreement.

A reaffirmation is voluntary, even if you initially intend to reaffirm.

[annalynn]

we didn't do any of that. But one page in my lengthy petition (filled out by the paralegal) is entitled:
Chapter 7 Individual Debtor's Statement of Intention

under that it has the HOA name--the address of the property securing the debt (my home)
a checkmark indicates I plan to retain the property--not surrender it
a second checkmaek says I intend to reaffirm the debt
and I 3rd box is checked stating the property is non-exempt.

I didn't fill this page out (or sign it), the paralegal included it in the petition.

So to actually reaffirm (which I don't intend to do) we would need a formal agreement and paperwork. (which makes sense)

I wonder what the point of this page is...maybe to indicate that I intend to keep my home?

[Drazil65]

Hi, I would speak with the attorney and make sure he understands that you have no intention of reaffirming the house debt (which I assume is why the HOA is listed under that part because its attached to the house?) and to take that out of the petition. Your HOAs will be discharged up to the point of what was owed at the time of filing. If you stay and pay your mortgage and you HOAs after filing you should be fine and be able to stay in the house al song as you keep paying.

[annalynn]

thanks!

[HHM]

It's not that big a deal.

Your attorney is classifying the HOA debt as a "secured claim" (which it is), and as a secured claim, there must be some sort of statement of intent. As was pointed out, a statement of intent is just that, the petition, in that regard (and only that regrade), is not binding. It is probably just an over-site. The BK filing software attorneys use have default settings, that is probably the issue here. Since the secured claim needs some sort of statement of intent, (and technically, there are only 3 options, Reaffirm, Redeem, or Surrender, the software went to the default).

What is your goal with the "house" in the first place, are you planning on keeping the house or surrender?

Also, even if you actually plan on surrendering the house, it is often advisable to state an intent to reaffirm so you can use the "expense" to help pass the means test. If you did not state you were reaffirming the HOA, you cannot them claim the HOA as an expenses on the means test and schedule I&J.

[annalynn]

It's not that big a deal.

Your attorney is classifying the HOA debt as a "secured claim" (which it is), and as a secured claim, there must be some sort of statement of intent. As was pointed out, a statement of intent is just that, the petition, in that regard (and only that regrade), is not binding. It is probably just an over-site. The BK filing software attorneys use have default settings, that is probably the issue here. Since the secured claim needs some sort of statement of intent, (and technically, there are only 3 options, Reaffirm, Redeem, or Surrender, the software went to the default).

What is your goal with the "house" in the first place, are you planning on keeping the house or surrender?

Also, even if you actually plan on surrendering the house, it is often advisable to state an intent to reaffirm so you can use the "expense" to help pass the means test. If you did not state you were reaffirming the HOA, you cannot them claim the HOA as an expenses on the means test and schedule I&J.

Now it all makes sense! Thanks! Yes--I am planning to keep the house.