People faced with bankruptcy feel as though it is the end of their lives.
Not many know that they can continue with their normal lives despite the circumstances.
There are mainly two chapters that individuals can file for a bankruptcy petition, chapter 7 and 13.
Chapter 7 allows for the debtors property to be sold and the money gotten paid to the creditors who have proved that they have claim over the alleged property.
Chapter 13 requires that the debtor makes a repayment plan to the creditors and his property cannot be sold.
This means that the debtor has to continue working in order to pay off the debts.
It is important to know that refinancing after bankruptcy is not only possible but also easy.
It seems as the only option to deal with your mortgage.
One can borrow from specialized lenders in order to pay off the old mortgage and still retain the house.
When this is done under chapter 13, an automatic stay on the debtors home is granted.
When refinancing after insolvency one can employ chapter 7 after the mortgaged home has been refinanced.
In this case, the debtor will retain the house which is under chapter 13 of financial constraints and have any other property recouped and sold to cover the debt incurred.
The attorney handling the financial distress case against the debtor can offer a bailout for the debtor to allow the debtor to retain the property.
In cases where the debtor fails to make the monthly payments towards the mortgage company, the company may decide to go to court.
It is therefore quite important for the debtor to seek alternatives such as borrowing to save his home.
Refinancing after insolvency must be done through experts in the area.