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Can I refinance my home while in chapter 11 bankruptcy?

Brusly, LA |

I owe $47,000, (which I pay $700.00 montly) on a mortage and $25,000 due to debtors. I'm in a chapter 11 bankruptcy and paying $1900 monthly towards the $25,000 bankruptcy debt. My home is worth $200,000. I'm on a fixed income with no spouse. Children and grandchildren are helping out, but I'm looking for more of a permanent solution.

Sorry, I'm in Chapter 13 and my lawyer got me the $1900 monthly payment plan. Very difficult to pay since my husband passed away last year. Im on a fixed mothly income of $3800. I want to consolidate the remaining mortgage and the bankruptcy debt. Is that possible?

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Attorney answers 4


Your post does not add up. If you are in a Chapter 11 case you certainly have a lawyer because it is virtually impossible to not have one. Your facts also do not indicate you would be in a Ch. 11. Do you mean Chapter 13? Either way, you need a lawyer badly. You won't find many lenders even willing to re-finance in a Ch. 13. If you could re-finance, you'd probably be better off out of Ch. 13 anyway based on what you posted. Contact your lawyer, or get one, as you risk a Chapter 7 if creditors are not paid in full (again, based on your facts).


I agree with Mr Riddle. Ch11 doesn't sound at all appropriate for you with your facts.
I would think that you should be able to find someone willing to refinance a 47,000 mtg on a 200,000 home; but I can't see it saving you very much if you're only paying 700/mo now.


Revisit your case with your lawyer. Chapter 13 plans can be modified due to changed circumstances. If the chapter 13 case has become burdensome, you have the right to have the case dismissed.


This sounds like your attorney ripped you off. How can one pay $1,900 a month on 25k in debt?

$1,900 x 60 payments = $114,000. Makes absolutely no sense.

The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: for more information about my services.



Well my original payment was $1200 a month for 6 years. Made payments for 4 years then my husband passed. Wasn't able to pay any payments for 9 months, went back to court and now I have abt 13 payments left at $1900 a month.

Michael Avanesian

Michael Avanesian


I assume you meant 5 years since Chapter 13 can't be longer than 5 years. The problem with what you're saying is we don't really know why you had to make those huge payments and how things have played out. That's why you need an attorney to look at what's been done. You're leaving out too many critical details. $1,200 per month for 60 months = $72,000. What kind of Chapter 13 is that? Does it count your mortgage payment too? I want to help you, but I feel like you really need an attorney.

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