Refinance During Chapter 7
November 28, 2009 9:34 am BusinessIt is possible to refinance your home while you are in bankruptcy, though it will require court approval. If you are in a chapter 7 and are trying to do a traditional refinance (a new lender, all new paperwork, etc.) your lender is probably going to want to wait until you receive your discharge to complete the transaction, so it is rare to see a re-fi occur while a chapter 7 case is active. However, refinancing while in Chapter 13 is relatively common, even in today’s market. Usually a refi occurs after you’ve been in Chapter 13 couple years, and it’s often used to pay off a Chapter 13 plan as well as restructure mortgage debt.