Re: Bankruptcy effect on reverse mort.

There is no reason that you have to lose your home in Bankruptcy. As I understand reverse mortgages (and I do not profess to be an expert on them) you make no mortgage payments. In theory, you may have no equity left in the property due to declines in the real estate market, so it is very likely not an asset that can be sold by the Trustee. You need to review your specifics with a bankruptcy attorney on that issue. Finally, since there are no payments due on your mortgage, you would not be in default with the mortgage lender. I would suggest that you contact a local, qualified bankruptcy attorney to review the details, but I don't believe they can foreclose and take your home based solely on the bankruptcy.

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Re: Bankruptcy effect on reverse mort.

I am Gary Fraley, founder of Fraley & Fraley, California Bankruptcy Attorneys, located in Sacramento CA. I have been in practice for 31+ years and am a State Bar Certified Bankruptcy Specialist. You may be in a unique position because you may have no equity but have a cash flow. The exemption for your home is $150,000 of equity. Your home would be at risk ONLY IF YOU HAD MORE THAN $150,000 IN EQUITY. The real question is which of 2 different exemption systems will be best for you. If you use the wrong system you could lose your vehicles, tax refund, bank accounts and other assets. You need a competent bankruptcy attorney to determine what is the best system and to help you with pre-bankruptcy planning. --Gary Fraley