QUESTION
If I have a reverse mortgage on my home, do I have to list that in filling for chapter 7 bankruptcy on credit card debt?
Asked on Jul 26th, 2017 on Bankruptcy - Wisconsin
8 ANSWERS
When you file bankruptcy, you are required to list EVERY DEBT. Is there something about EVERY or DEBT that does not apply to your reverse mortgage? If you fail to list EVERY DEBT in your bankruptcy case, you will be committing several criminal offenses, so unless you want to face jail time because you made a mistake, I urge you to get experienced representation. Or you are welcome to learn the hard way. Your choice!
Answered on Aug 22nd, 2017 at 3:44 PM
Listed as a lien on real estate.
Answered on Aug 21st, 2017 at 7:59 PM
1 Award
Yes.
Answered on Aug 21st, 2017 at 7:59 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
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Yes, a reverse mortgage is legally a debt so it's listed in the bankruptcy. Even though it's actually the sale of your residence for a very low price. You need to have an attorney review your reverse mortgage before filing bankruptcy because the holder of the reverse mortgage probably will foreclose and take away the house, if you file a Chapter 7.
Answered on Aug 21st, 2017 at 1:28 AM
It would be listed as a secured debt on schedule D. You cannot exclude it.
Answered on Aug 21st, 2017 at 1:27 AM
You must list ALL assets and liabilities on your bankruptcy schedules.
Answered on Aug 21st, 2017 at 1:27 AM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
Absolutely list it or better be prepared to have a fight with the trustee about those funds, what you did with them, the rest of the equity, if any. Be very careful.
Answered on Aug 21st, 2017 at 1:27 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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You must list it, but it's not clear that you would schedule it as credit card debt. You might list it under schedule D as secured debt. Get a lawyer. It's almost always a good idea.
Answered on Aug 21st, 2017 at 1:26 AM