Legal Question in Bankruptcy in California

Re: Chapter 13 & a lien

In a Chapter 13, the debtor submits a proposed repayment plan that includes monthly payments to pay off any past due balance on the loan. If the court approves your plan and you make all of the required payments, then you will be fully reinstated on your loan. The bankruptcy filing will automatically stop the foreclosure, at least temporarly.

You will need court approval to borrow the money to refinance. It is certainly possible and I have seen debtors refinance their house and get out of Chapter 13 bankruptcy. However, you need to discuss this in more detail with a local bankruptcy attorney.

Re: Chapter 13 & a lien

You need to get your payment plan confirmed. The Bk will stop the foreclosure. You need to have steady income to qualify for chapter 13.