Using the Equity in Your Home While in Chapter 13

If you are currently in a Chapter 13 Bankruptcy, you can still benefit from refinancing your home. The refinance may allow you to pay off your Chapter 13 debt and reduce your total monthly payments.

Make sure to contact your trustee to see if there are any special requirements that you must fufill before you are allowed to refinance. There may be some considerations or approvals that must be filed in order for you to move forward with your refinance.

In addition to increasing your monthly cash flow, another benefit of using the equity in your home to pay off your Chapter 13 is that it will be off your credit report sooner than if you had simply paid your monthly payments as agreed.

If you are considering refinancing to pay off Chapter 13 debt, you must be current on both your mortgage and your Chapter 13 payments. Preferably, no late payments in the last 12 months.