When you are in over your
head financially, there are a lot of options to help get you back on your feet.
You can call your creditors and ask them to give you a lower interest rate, or
to defer some of your payments. You can also take out a consolidation loan and
wrap all of your payments into one lump sum payment each month. You can try to
take equity out of your house by doing a refinance, which might also lower your
interest rate. And you can also file for bankruptcy, so certain debts are
eliminated and you are then able to pay what debts do remain.
But what if you want to
refinance your house, because the benefit of having a lower rate and lower
payment for the duration of a typical 30-year mortgage is long lasting, but
also need to file for the protection offered by bankruptcy? Will bankruptcy hurt your chances to do a
refinance of your mortgage, or should you refinance first and then file a case?
Here are some pointers on the subject:
•
If you refinance before you
file a bankruptcy case, you can reaffirm the refinanced mortgage debt and still
get the benefit of the bargain you made during the refinance.
•
If you wait until after your
bankruptcy case is over, you might not get to refinance right away because
lenders will want to see a pattern of regular payment for a few months prior to
making you a new loan.
•
If you file a Chapter 13 case
you might be able to put the past due mortgage payments in your plan in such a
way that you pay them out over a period of time, instead of having to get
current right away. In this way, you get the benefit of being considered
current on your mortgage payments while actually making the payments that get
you to a current status.
Whatever your needs, call us to find out
what option will work best for you. Your home is your most valuable asset, and
we will work with you to find a way to keep you and your family in your house,
at a payment you can afford.
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