You need the bankruptcy trustee’s permission to do this, but if you can find a lender who will refinance at a lower and/or fixed interest rate (not just a lower payment) most trustees will have no problem with allowing you to do this.
I think some trustees would have a problem with refinancing a 30 year fixed interest loan to, say, one of the so-called “exotic” loan products that allows you to pay a lower payment for several years now followed by an exploding payment several years later. These are the kinds of mortgage products that bring many people to the bankruptcy court in the first place.
Your main problem may be finding a lender willing to refinance while you are in bankruptcy. This was tough even before the current mortgage crisis; I’m guessing that now it is probably even tougher.
You need the bankruptcy trustee’s permission to do this, but if you can find a lender who will refinance at a lower and/or fixed interest rate (not just a lower payment) most trustees will have no problem with allowing you to do this.
I think some trustees would have a problem with refinancing a 30 year fixed interest loan to, say, one of the so-called “exotic” loan products that allows you to pay a lower payment for several years now followed by an exploding payment several years later. These are the kinds of mortgage products that bring many people to the bankruptcy court in the first place.
Your main problem may be finding a lender willing to refinance while you are in bankruptcy. This was tough even before the current mortgage crisis; I’m guessing that now it is probably even tougher.