Is it possible to refinance a mortgage while in chapter 13 bankruptcy? Yes! Is it common or easy to do? No! Chapter 13 bankruptcies are payment plans whereby an individual pays their left over income (after paying all necessary expenses) to pay back a portion of her debt. This means that the client usually has income (ideally stable income) and a means to pay both living expenses, including a mortgage, and some debt. In essence, a chapter 13 client is telling the court: “I have some money to pay my debt; I just don’t have enough to pay what my creditors want me to pay.” (more…)