Legal Question in Bankruptcy in Illinois

Thank you for your question. A reverse merger is treated much like a conventional mortgage in bankruptcy. That is, if there remains "equity" in your home after accounting for the reverse mortgage, your home may be at risk for sale by the bankruptcy trustee. However, given today's real estate market, most homes subject to a reverse mortgage that I have come across have no equity and are generally safe. Moreover, its improtant to note that each individual filing bankruptcy has a $15,000 "exemption" which can serve to shield an even amount of equity from liqudiation. Please let me know if you have any more questions. You can reach me via email at: [email protected]. Thanks!