I am uncertain of the posture of the bankruptcy case, i.e. the chapter filed, the claims register, etc. These are the issues that matter to answer...

When she dies, you can write them to claim it. If it is there, they will pay you.

You can walk away. Do not form an estate if there are a lot of debts.

The type of attorney depends on what you want to happen. Are you the complainant or the subject of the investigation.

The trust should not be an impediment to a loan, as long as you personally guarantee it. Why do you think it is an issue? Nullifying the trust...

No. You can do it either way, as long as the purchaser's title company is OK with it. Sometimes they want a double transaction, which is not...

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No. A life estate means life, not residence.

No. It is not like a foreclosure with a note.

Yes you can. Whether you win is another issue.

While you do not have to pay, you are going to have to pay if you want to keep the property. That issue turns on how it is titled.