By Tyler Plack
Tyler Plack is the President of South River Mortgage. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification and is the author of The Retirement Solution: Maximizing Your BenefitTyler is a seasoned entrepreneur and real estate investor renowned for his expertise in reverse mortgages and his commitment to addressing seniors' equity challenges. Tyler brings a unique perspective to his ventures, having built several successful companies throughout his career. His insights are frequently sought by industry publications, where he is recognized for his vast knowledge in the realm of reverse mortgages.
An avid investor in income-producing properties, Tyler is dedicated to helping seniors navigate their financial needs with compassion and expertise. When Tyler is not helping solve America's retirement crisis, he is a skilled pilot flying airplanes for fun.
If you’ve filed bankruptcy in the past, you might assume a reverse mortgage is off the table.
A lot of people think that.
But here’s the truth.
In many cases, you can still qualify for a reverse mortgage after bankruptcy.
It depends on where you are in the process and whether the bankruptcy has been discharged.
Let’s break this down in simple terms.
The Short Answer
Yes, you can often get a reverse mortgage after bankruptcy.
FHA guidelines allow borrowers to qualify after bankruptcy, as long as certain conditions are met.
That surprises a lot of people.
Reverse mortgages aren’t based on credit scores the same way traditional loans are. They’re primarily based on:
- Your age (62 or older for a HECM)
- Your home equity
- Your ability to keep paying property taxes, insurance, and maintenance
That changes the conversation.
What If You Filed Chapter 7?
Chapter 7 is a liquidation bankruptcy. It usually stays on your credit report for up to 10 years.
But here’s what matters for a reverse mortgage.
If your Chapter 7 has been discharged, you can typically apply for a reverse mortgage.
You don’t usually need to wait years after discharge like you would with a traditional mortgage.
However, you must:
- Be fully discharged from bankruptcy
- Have clear title to the home
- Show that you can keep up with property taxes and insurance
The discharge is key. If the bankruptcy is still open, approval becomes much more complicated.
What If You’re in Chapter 13?
Chapter 13 is a repayment plan bankruptcy.
This is where things get more technical.
If you’re still in an active Chapter 13 plan, you may need:
- Court approval
- Trustee approval
- Documentation showing how the reverse mortgage fits into your repayment plan
Some lenders won’t move forward during an active Chapter 13. Others may allow it with proper approval.
Once Chapter 13 is completed and discharged, qualifying becomes much simpler.
Why Bankruptcy Isn’t an Automatic Disqualification
A reverse mortgage isn’t about borrowing more money to make payments.
It’s about accessing equity in your home.
There are no required monthly mortgage payments. That’s why prior bankruptcy doesn’t carry the same weight as it does with forward mortgages.
Lenders are mainly focused on what’s called a “financial assessment.” That means they review whether you can continue paying:
- Property taxes
- Homeowners insurance
- HOA dues (if applicable)
- Basic home maintenance
If you can show stability there, bankruptcy alone usually won’t stop you.
Are You Eligible for a Reverse Mortgage?
(Find out in 60 seconds)
When Bankruptcy Can Still Be a Problem
There are situations where it can cause delays or issues.
For example:
- If the bankruptcy hasn’t been discharged
- If there are federal tax liens involved
- If title to the property is unclear
- If the home was included in the bankruptcy improperly
This is why reviewing your specific situation matters.
Does Bankruptcy Affect How Much You Can Get?
Usually, no.
Reverse mortgage proceeds are based mostly on:
- Your age
- Current interest rates
- Home value
- FHA lending limits
Your credit score isn’t the main driver.
However, if you have large unpaid property charges or liens, that can reduce available proceeds because those must be paid off at closing.
The Good News
Many seniors file bankruptcy earlier in life due to medical bills, job loss, or other hardships.
That doesn’t mean you lose access to your home’s equity forever.
If your bankruptcy has been discharged and your title is clear, you may still qualify.
The key is getting accurate information instead of assuming the answer is no.
If you’re wondering how much you could qualify for, the easiest next step is to check your numbers.
You can get an instant reverse mortgage estimate in seconds using our free calculator.
There’s no obligation and no pressure.
Just clear answers based on your home value and age.
Get your instant quote today and see what may be possible.
Frequently Asked Questions
Can I get a reverse mortgage immediately after Chapter 7 discharge?
In many cases, yes. Once your Chapter 7 is discharged and your title is clear, you can usually apply.
Can I get a reverse mortgage while in Chapter 13?
Possibly, but you may need court or trustee approval. It depends on your lender and your repayment plan.
Does bankruptcy lower my reverse mortgage amount?
Typically no. Your age, home value, and interest rates matter more than your credit score.
Do I need good credit to qualify?
Credit isn’t the main factor, but lenders will review your ability to pay taxes and insurance. That’s part of the financial assessment.
What if I had foreclosure in the past?
It depends on the timing and circumstances. A prior foreclosure doesn’t automatically disqualify you, but it should be reviewed carefully.
What’s the first step if I’ve had bankruptcy?
Make sure your bankruptcy has been discharged and your title is clear. Then review your eligibility with a reverse mortgage specialist or use a calculator to see your estimated proceeds.
If you’d like clarity on your specific situation, start by checking your instant quote. It’s quick, free, and gives you a clear starting point.
