Question
Can I still refinance if I declare chapter 13 bankruptcy ?
I have a 420 fico credit score, but I am hoping that after the bankruptcy my score will go up and maybe then I can get a better rate. Does this sound reasonable?
2 years ago - 4 answers
Best Answer
Chosen by Asker
Yes, you can still refinance even if your in bankruptcy. Many times this is part of the plan people inform the Trustee about. Depending on your state however,you may need to get the trustee and/or judge's permission.Just make sure you use a mortgage broker and not a bank,as most banks won't do it. I have refered some of my clients to fico400 ... so far with positive results. Be prepared! their rates with a 400 score are little higher than bank rates but it may be worth to save your home and pay off your debt and after say 1 year of good payments you can refinance to a better rate. Best of Luck!!
Source(s)
10 years Practicing Bankruptcy & Insurance Law
by tremble y
2 years ago
Asker's Rating: 
Other Answers
Bankruptcy should be a LAST resort. If you are dead set on bankruptcy... make sure you restablish AS SOON as possible. Get secured credit cards or anything else you can get. Do this fast and make sure you have at least three open tradelines. Lenders will loan one day out of bankruptcy but if your goal is to get lower rates your going to have to re-establish your credit swiftly and responsibly. Get those trades open right after your discharged BK and you'll be alright in 12 months time and probably get lower rates.
by Five Stars Mortgage- 2 years ago
you can try, but you have already demonstrated that you cannot be trusted to pay your debts as you originally agreed. If there is a lender that would deal with you at all, it woul be for a very high interest rate and only if there was plenty of built-in equity in case they have to foreclose
by laughter_every_day- 2 years ago
Most lenders minimum credit score is 500. This will help to improve your score. Register on the opt out pre-screen website (it's supported by the 3 credit reporting companies - Equifax, TransUnion and Experian). It's free, just opt out electronically for 5 years, pull your credit after 30 days.... it helps. www ... In addition, dispute any incorrect information on your credit report on each of the credit respositories (Equifax, TransUnion and Experian). They have online websites to dispute online, but you will need to order a copy of your credit report. If you have any credit left, keep it current, it really helps.
by Bubbles- 2 years ago