Refinance After Bankruptcy
Many people do not realize that they can refinance their house after bankruptcy. It may not be the easiest task to tackle, but it is possible to achieve. When you find the right people to work with, you will be surprised at how easy it may be to get your house refinanced after you have filed for bankruptcy. In a chapter 7 bankruptcy you do not have to have permission from the courts to incur the debt to refinance, but the lenders may request and require a copy of your discharge. This may be frustrating, but know that the process is not long for a chapter 7 and you will discharge before you know it. In a chapter 13 it may seem more difficult, because you are in the process longer and you will have to submit a request to the chapter 13 trustee through your attorney. What they would need to do this would be a good faith estimate showing what your payments are going to be and the amount of money you are refinancing. You don’t have to go through the courts to get approval, but do need the trustee’s letter of approval. Don’t worry, to date, I have not seen the trustee deny a refinancing. The trustee would deny it if it was not reasonable and they felt that you would not be successful. Any questions that you may have for your attorney, contact them in advance to prevent any time crunching issues.
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