Legal Question in Bankruptcy in Utah
How would declaring bankruptcy effect my reverse mortgage and home?
Asked on 5/04/10, 9:42 am
1 Answer from Attorneys
Alvin Lundgren
Alvin R. Lundgren, L.C.
Your reverse mortgage is a loan against your property. The bankruptcy would not necessarily affect the loan, but you have substantial equity in your home and the bankruptcy trustee may seek to have the house sold, the mortgages paid and the balance used to pay your creditors. OR the trustee may require you to file a Chapter 13 bankruptcy with you paying money to the trustee for your creditors. You will need to talk to a bankruptcy attorney with all of your financial information to know the complete effect.
Answered on 5/10/10, 6:45 am
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