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Reverse Mortgage
A reverse mortgage is a loan that is paid out over time rather than a
lump sum. If it were some kind of installment sale that would be
different, but it is a loan. It is in a sense similar to an equity
line where the borrower can access the line mulitple times until the
line limit is reached. Loan proceeds are not income, period. The
trustee might be interested in the disposition of the borrowed funds
if some large sum were withdrawn to determine where the money went
just like a recent refinancing.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
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On Wed 24/02/10 11:41 AM , "sesmithesq" sesmithesq@aol.com sent:
How do Chapter 7 Trustees handle situations like the "reverse
mortgage"? Is that considered Schedule I income for the debtor?
Links:
[1] mailto:cdcbaa@yahoogroups.com?subjectReverse Mortgage
[2]
The post was migrated from Yahoo.
charset="windows-1251"
Borrowed money is not "income" for the means test. RAMs produce borrowed
money.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
sesmithesq
Sent: Wednesday, February 24, 2010 11:42 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Reverse Mortgage
How do Chapter 7 Trustees handle situations like the "reverse mortgage"? Is
that considered Schedule I income for the debtor?
charset="windows-1251"
Message
Borrowed money is not
"income" for the means test. RAMs produce borrowed
money.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.