When people in Texas are forced to file for bankruptcy, they tend to find it difficult to apply for refinancing due to the abysmal state of their credit score. Nevertheless, they can still receive refinancing if they manage to follow a few simple steps.
In order to receive refinancing, the first thing a person should do is to convene with their bankruptcy attorney, who should have the entirety of their financial history on record and will be able to offer suggestions with regards to how to best move forward. After meeting with the attorney, the individual seeking refinancing needs to start scouting different creditors to work with, which could come in the form of a mortgage company, a bank or a commercial loan organization.
With an attorney and a lender on their side, the individual in question will have to come up with a clear budget plan that details how the new loan will fit in the grand scheme of things. People still going through bankruptcy proceedings should factor in how this refinancing will affect the procedure they are currently entangled in.
Once all of this is done, the individual seeking the loan will have to file a motion in bankruptcy court, which will involve a court cost. Subsequently, they will have to contact their bankruptcy trustee who is in charge of their case, and the trustee will review the budget to make sure everything is on the level and compliant with all the relevant laws and regulations. Finally, after the trustee has approved the budget, the individual who has gone through all this trouble to get refinancing will have to get the judge’s approval by showing them that they have the financial means to refinance.
Even though this is a long and seemingly complicated process, a bankruptcy attorney may offer guidance throughout each step. An experienced attorney may help clients navigate through the process and simplify matters as much as possible.