Some time ago I published an article about the Arizona Supreme Court‘s terrible decision that those who live in RVs, motor homes, trailers, or houseboats—basically anything that is not a traditional stick or manufactured home—can lose their home to credit card companies or if they file for bankruptcy protection. Well, now a few good attorneys are doing something about that horrible decision. Plus, two other court decisions that prey on those with lower income. Here is a Channel 12 report.

ACBC (www.ACBC.org), a group I started in 2005 to protect consumers and educate bankruptcy attorneys, is sponsoring three bills that will directly help protect those who are forced to file bankruptcy. We are trying to protect those living in RVs, motor homes, trailers, houseboats, etc. Also, those who depend on childcare tax credits to pay for food. Lastly, stop the bankruptcy trustee who sells the debtor’s home in order to personally benefit from the sale if there was any appreciation after filing the bankruptcy.

Here are links to the three bills:

SB 1540 – RV homestead bill https://www.azleg.gov/legtext/57leg/1R/bills/SB1540P.pdf  The current law (ARS 33-1101) only mentions homestead protections for those living in a house, condo, or mobile home. Right now, some bankruptcy trustees are seizing other types of homes—RVs, motor homes, trailers, boat houses, etc. This bill will expand the definition of someone’s home to include all types of living situations.

SB 1542 – Fixing the CTC/EITC exemption: https://www.azleg.gov/legtext/57leg/1R/bills/SB1542P.pdf  Right now, because of a misunderstood loophole in the current law, the bankruptcy trustees are seizing tax credits low-income people receive for childcare and/or earned income. This bill will close the loophole the bankruptcy trustees are pushing.

SB 1543 – Removing appreciation of a homestead from the bankruptcy estate: https://www.azleg.gov/legtext/57leg/1R/bills/SB1543P.pdf  The current law does not specifically mention how the appreciation will be addressed when someone is in bankruptcy. Some bankruptcy trustees are successfully arguing that any appreciation after the bankruptcy is filed belongs to the “bankruptcy estate,” meaning the trustee and the creditors. As a result, some chapter 7 trustees are keeping their cases open for months or years, waiting for the house to appreciate so they can sell the house, evict the owners (the debtors), and use the proceeds to pay themselves, plus their attorney, then the creditors. If someone converts a case from chapter 13 to chapter 7, the chapter 7 trustees are claiming the appreciation during chapter 13 (which could be a few years) and then forcing the sale of the house and eviction of the owners (the debtors).

Senator Frank Carroll has agreed to sponsor the bills.

Your representatives need to hear from you that these three bills are necessary to protect financially stressed families. A phone call, email, or letter to your legislator will help promote these bills and only take you a few moments. Click here for How do I find or contact my Legislator?  Anything you do supporting these three bills would be great. Ask your friends and neighbors to do the same (whether they are living in RV’s or “traditional stick homes”). The more support for these bills, the more likely they will become law.

Help us pay the lobbyist pushing these bills through the Legislature.

The second thing you can do is contribute to our GoFundMe to raise funds for our lobbyist: https://gofund.me/1f0e044d. Kenn Neeley and I are matching any donation, so $25 becomes $75. Any amount would be greatly appreciated.

Please share this with everyone.