Expert: Terry Leeders - 4/4/2009

Question
I have been paying on my bankruptcy for 4 yrs, due to the economy I was laid off and fell behind one month on my mortgage and a few months on my payments to the trustee, both have set up back pay plans and I only have one more payment on the mortgage to be current and 3 on the bankruptcy to be current.  However, I would like to pay off the 13 with a mortgage refinance.  My credit score is approx 520, the approx estimated value of my home is between 205K - 210K and I only owe approx 55K on my home.  I have been here for 16yrs and have no intention of leaving, but I am interested in repairing my credit.  I am employed full time now and have been for 9 months.  I just need someone to help me out.  If you review my history, I am not one to be behind on anything.  Please contact me if you or if you know of anyone who can help.  I am not trying to bailout I am trying to pay up and get this right.

Answer
You need to talk to a bank about the refinancing.  Once you have a deal worked out, then you need to call your lawyer to bring a motion in bankruptcy court to approve the deal.  once approved, you can close on the loan and fund the chapter 13 plan with the proceeds.