Legal Question in Real Estate Law in California

I'm not a bankruptcy expert, but I believe it would have to have been an approved part of the Ch. 13 plan, although it may be possible to have it ratified.

I will go so far as to say that a Chapter 13 debtor may refinance his home, pursuant to Section 1303 of the Bankruptcy Code. Such a transaction likely would have to be consistent with the debtor's approved Ch. 13 plan and might require prior court approval (I am not a bankruptcy lawyer). Whether a particular refinancing was "legal" would require absence of fraud on the part of the debtor/borrower and any necessary prior or subsequent approval by the bankruptcy court. If you need more detail, please re-ask your question under a LawGuru bankruptcy heading and provide more facts about the Ch. 13 plan, whether it provides for the refinancing, and whether prior or subsequent court approval was sought, whether the refinancing has been done or is merely being planned, etc.