Short Sale with Bankruptcy 3 months ago?

I have a potential short sale, the homeowner began getting behind in March 2005, then decided to file BK, after failing to get anything worked out with the LM dept. The BK was discharged in November 2005.

Now the homeowner is still having troubles making payments due to some medical problems and loss of employment. What kind of money-wrench does the BK throw into my dealings with the LM dept? They owe $50k and the house is worth $50-60k ARV, but only $10-15k in its current condition.