Reverse Mortgage for Avoiding Bankruptcy

• Those who have accumulated debt, which they cannot afford to pay, may want to consider a reverse mortgage if they have already used their home equity option. A reverse mortgage can be an alternative to filing bankruptcy, according to ReverseMortgageAdviser.com.
  
  

Reverse Mortgage After Bankruptcy

• In a Chapter 7 bankruptcy case, a trustee can liquidate a home secured by a reverse mortgage if equity is available above and beyond what a debtor can protect as exempt, according to Chicago Bankruptcy Lawyers & Attorneys. Filling Chapter 13 bankruptcy may require the debtor to repay the reverse mortgage loan over five years, according to ReverseMortgageAdviser.com.
  
  

Reverse Mortgage After Death

• Usually the trustee can liquidate real property, which has been secured by a reverse mortgage upon death of the debtor. However, if the debtor's children have been living in the home with the debtor, then filing Chapter 13 bankruptcy may allow payment of the reverse mortgage over five years, according to Bankruptcy Law Network.