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Solutions For Refinancing With Bankruptcy

By: Lisa Jones

Even if you have filed for chapter 7 or chapter 13 bankruptcy, you still have the option to refinance using the equity in your house as collateral, and many lending institutions will accept your business, even with your poor credit history.

Analysts suggest waiting 2 years before applying for a refinance loan, however, it is a fact that you can refinance usually after only 6 months. Bankruptcy is a significant financial blemish on your credit report, and many credit institutions like to see at least that duration of time before issuing any additional loans. You can refinance with bankruptcy filings more recent than these two years, but you will likely pay above prime for your home equity loan. Bankruptcy is not the end of your credit life, but you may have to work a little harder than you used to secure a refinance with bankruptcy.

How does the type of bankruptcy affect the process?

The situation depends a little bit on what type of bankruptcy you filed as to how eager loan institutions will be to offer refinance. Chapter 13 bankruptcy is seen as preferable and will allow you better terms for your refinance. Chapter 7 bankruptcy is more serious and you will likely have to accept considerably higher interest rates than banks are offering their best customers.

If you are applying for refinance, chapter 13 bankruptcy show a lending institution that you were willing to work with your creditors in an effort to pay off your debts. This can be a major selling point as you strive to secure a new refinance. Chapter 7 bankruptcy means that you truly defaulted on your debts, and as such are a larger risk for a lending institution.

How long must you wait after bankruptcy before applying for a refinance consolidation bankruptcy loan?

You may decide that even though you will pay substantially higher rates, you still want to refinance. Consolidation bankruptcy loans are available to people, even immediately after bankruptcy. This can allow you to get back on your feet by using your untouchable major asset (your House) after bankruptcy. These refinance chapter 7 bankruptcy; loans and refinance chapter 13 bankruptcy loans will use the equity of your house as collateral to secure the loan.

If you would like to refinance with bankruptcy claims in your recent past you will need a secured loan. Lenders are very unlikely to offer you an unsecured personal load for ten or more years after filing for bankruptcy.

A home equity loan bankruptcy solution can be a great way for you to start rebuilding a good credit history. By securing a refinance consolidation bankruptcy loan, you will have access to the monies you need to begin to develop a positive credit relationship. Even if the interest terms of the consolidation bankruptcy loan is higher than a conventional loan, you can pay off the debt from a home equity loan bankruptcy solution over a period of many years, thus spreading the burden of debt over a more manageable time period.

A refinance bad credit bankruptcy loan or a home equity bankruptcy loan solution can be attained immediately after filing for bankruptcy, and for many, these solutions may even be a prudent financial move.

Article Source: Main Articles

Find the lowest interest rate refinance loan, if you have a Chapter 7 or Chapter 13 bankruptcy history at www.pioneerlenders.com. Pioneer Lenders is a leading consumer-centric financial network that assists homeowners in finding the lowest interest rates on refinance loans regardless of credit history.

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