QUESTION
Can I apply for bankruptcy without affecting this mortgage?
Asked on Jan 23rd, 2013 on Bankruptcy - Florida
More details to this question:
I have recently obtained a reverse mortgage which has paid off my mortgage. Can I apply for bankruptcy without affecting this mortgage? Would my house be safe from lien? Would bankruptcy resolve my credit card debt?
8 ANSWERS
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
Yes to all.
Answered on Apr 05th, 2013 at 4:01 PM
Bankruptcy will resolve your credit card debt. As for the reverse mortgage, I am not sure. I don't believe it will affect it at all, because you are essentially selling your home to the mortgagor.
Answered on Jan 28th, 2013 at 8:27 AM
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
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You need to talk to a very good bankruptcy attorney licensed to practice in the state where you live. Your question about the reverse mortgage is very complicated and may come out different depending on where you live and the type of reverse mortgage. Be careful.
Answered on Jan 28th, 2013 at 8:27 AM
Richard hirsh
Without knowing the terms of your reverse mortgage it is difficult to answer. However, if you are getting monthly payments from the lender, a creative bankruptcy trustee might claim those payments since they represent not earned income but "withdrawals" from the equity in your home.
Answered on Jan 25th, 2013 at 8:43 PM
If you are receiving monthly payments from your reverse mortgage, when you file bankruptcy, these payments will stop unless your attorney understands the process that will allow you to continue to borrow against this reverse mortgage loan. Some kinds of liens can be removed through bankruptcy, but many cannot. In most instances, bankruptcy will eliminate your credit card debt.
Answered on Jan 25th, 2013 at 7:35 PM
The protection of your home when you file for bankruptcy varies state by state. In Florida, a debtor's homestead is an exempt property (there are limitations to the size of the property based on its location but I've never had a debtor whose property exceeds these limitations), therefore the same will remain in the possession of the debtor regardless of the equity in the property. The property will continue to be subject to any mortgage liens. Please keep in mind that each case is different, and before filing for bankruptcy you should consult with an attorney.
Answered on Jan 25th, 2013 at 9:16 AM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
at
Love and Dillenbeck Law
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If you got a reverse mortgage, your debt issues with the credit cards should have been resolved. If they are not, you need to speak to an attorney in your area. Most give free consultations, this question can only be answered after a thorough consultation.
Answered on Jan 25th, 2013 at 9:16 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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There are too many variables, but it COULD help you.
Answered on Jan 25th, 2013 at 9:16 AM