How to Refinance Your Mortgage Loan After Chapter 7 or Chapter 13 Bankruptcy


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Did you recently file for Chapter 7 or Chapter 13 bankruptcy and need a mortgage refinance loan?

There is no question that filing for bankrupcty negatively impacts your credit file. Whenever you apply for a mortgage loan, credit card or even a small unsecured personal loan, your potential lender pulls your credit report. Having a bankrupcty or chargeoff on your credit report is a red flag that tells the lender that you are likely not to pay back your loan.

Can you refinance your mortgage loan after bankruptcy? The quick answer is “yes". You can get a home equity loan, HELOC or a cash out refinance loan, even after bankrupcy.

Getting A Mortgage Refinance Loan After Chapter 7 Bankruptcy

When you filed for Chapter 7 bankruptcy, chances are, you were able to keep your home. If you are one of the lucky ones, who lives in a state like Florida, California, Nevada or a number of other states that have seen significant appreciations in home property values - you may have anywhere from 5% to 50% equity in your home. You can take advantage of this equity to wipe out any outstanding debts that are left over after the bankruptcy or to take care of other financial needs.

The great news about Chapter 7 bankruptcy is that it offers a new beginning and erases most of your debts with the exeption of 19 cases, where debts are not discharged. These cases include, child support, taxes, student loans, fines and restitutions imposed by courts.

If you still have student loans or taxes to pay - there is no better time to tackle them, than now. Give yourself the gift of starting fresh.

You can get a mortgage refinance loan, literally the day after your Chapter 7 bankrupcty is discharged. You don't have to wait for any specified time period. You will need to find subprime mortgage refinance loan lenders, who specialize in cash out refinances, home equity loans and HELOCs for a mortgage program that is suitable for your credit score - be it 450, 480, 500, 550 or 600.

Getting A Mortgage Refinance Loan After Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows individuals to reorganize their finances. When a consumer files for chapter 13, the consumer proposes a plan to pay back his or her creditors over a 3 to 5 year period. During this period, the creditors cannot harrass or attempt to collect on any of the previously incurred debts.

For this reason, a person, who files a Chapter 13 bankruptcy can refinance their mortgage loan, 6 months after they file for bankruptcy.

Research recommended subprime mortgage refinance loan lenders, who offer bad credit home equity loans, HELOCs and cash out refinance mortgage loans after chapter 7 or chapter 13 bankruptcy.

Visit the mortgage loan resource guide at

Sharon Listner writes about finances and conducts in-depth analysis on various mortgage loan and personal loan programs.


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