Refinancing after a BK.

Going Through Refinancing Process After Bankruptcy

Just like in other financial distress requirements, it is quite important that the debtor goes through counseling before and after filing the petition. This is done irrespective of whether they have the hope of coming out of the distress. Its done by qualified counselors on financial matters. Once this has been done, a certificate is issued to the debtor to show that he has gone through the counseling sessions successfully.

For a debtor to go through refinancing after bankruptcy, it is important that he goes through a means test. This is a test used by the court to determine whether the debtor is fit to borrow more money to pay his current mortgage. The trustee must look at the debtors past income statements to determine if this is the only option that he has.

It is important for the debtor to know that, even though they may have problems paying the trustee who is handling the bankruptcy case, they can still find ways of coming out of the financial distress. The attorney handing the case can appoint a special attorney in such cases.

A debtor facing multiple financial distress cases should know that the court can file an avoidance petition for the unsecured debts. In cases where the unsecured debts are not catered for by filing avoidance petition, then a discharge may not be offered for this in court. This therefore means that the debtor will have to pay off the debt by either having his property sold or making a repayment plan with the creditors. The debtor can avoid this through refinancing after bankruptcy.

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