If you are able to try to avoid bankruptcy then do so, as it does extensive damage to your credit rating - making it difficult to obtain any loans or credit. If you have no other alternative than to declare either chapter 13 or chapter 7 bankruptcy, it doesn’t mean you have to lose your home.

It could be difficult to find a lender who will refinance your mortgage but there will be ones who will work with you. Be aware that some will charge high interest rates and fees, but there will be those who will be more willing to give you a chance. A good company will carefully review your situation, taking reasons for the bankruptcy and your current financial situation into account. They will offer you the best offer they can, this will most likely be higher than normal rates, but should not exceed 6-7% above the current rate.

Researching for a lender is always a good idea as some will give you better rates than others. Going online and making comparisons and reading testimonials of others in a similar situation can help you make a decision. Check with the Better Business Bureau for any lenders’ reputation and rating.

Asking at the bank you have an account with might be a good way to go as you have an existing relationship with them. The best way to do this though is use your existing lender; they already have a relationship with you and if you have been in good standing you might get a better rate. You should also know what the current rate is being offered to others who have declared bankruptcy.

If your application is denied from any mortgage lender you apply to, you can try a sub-prime mortgage lender. These are brokers who have access to many home loan lenders; including those who lend to those who cannot get mortgages anywhere else.