How Long After BK Can I Refinance (And Why)?

Exact Answer: At Least One Year

BK stands for bankruptcy, and it is a term used by professionals to describe the procedure followed by federal courts to assist individuals in getting rid of the heavy burden of bank loans and debt. At first, the person is suggested to sell away his possessions and repay the money. If not, then you have to find some alternatives to repay the debts.



Test your knowledge about topics related to Finance

1 / 10

What is the purpose of a budget?

2 / 10

What is a bull market?

3 / 10

What is the difference between debt and equity?

4 / 10

What does speculation in Stock Exchange means?

5 / 10

Bank overdraft is a good source of finance for _________.

6 / 10

Government grants are generally offered to businesses in:

7 / 10

What is a credit score?

8 / 10

What is the role of a financial regulator?

9 / 10

What is a financial advisor?

10 / 10

What is the stock market?

Your score is


The most common type of bankruptcy is liquidity which individuals with no scope or source mostly use to help them repay their loans. Whenever someone chooses to go through Chapter seven bankruptcy, the person needs to sell everything he owns except those protected by the state’s laws to clear his debts.

How Long After BK Can I Refinance

How Long After BK Can I Refinance?

When the person cannot repay the sums of money borrowed from creditors, bankruptcy is often cited as the most prudent solution for repayment. Getting bankrupt is something that people often face when they are low on their monetary benefits and other assets. Going bankrupt is said to be one of the worst nightmares of a human being. Despite several efforts here and there, the final declaration of such a scenario is sure to have an apparent effect on future purchases. The overall process is a bit complicated, but going completely bankrupt does not imply bleak prospects.

There is another popular type of bankruptcy that is chapter thirteen bankruptcy. When one wishes to go through this type of bankruptcy, the person has to give any one of the assets and pay the loan. After the clearance of the debts, the asset would be returned to the individual. The person desiring to fill this must have an income source that helps him feed himself daily. Bankruptcy is one of the most widely used legal processes of liquidating an individual’s assets to repay creditors. This is often considered the last resort available to a potential defaulter.

Type Of BankruptcyTime Taken To Refinance
Chapter 7 BankruptcyTwo to three years
Chapter 13 BankruptcyOne year

It takes time to refinance after getting bankrupt. If the bankruptcy is a chapter 7 bankruptcy, then it takes two to three years to refinance. In contrast, chapter 13 bankruptcy takes one year for refinancing.

Why Does It Take That Long After Bankruptcy To Refinance?

Bankruptcy involves a process in which an individual has to devise a proper financial plan which would help him get rid of his debts. The court, at maximum, gives a time frame of five years during which the individual has to repay the loans by the medium of a trustee. The trustee protects the individual from any actions by the creditors that would trouble the individual. After the fixed time of repayment, the person is set free from any debt.

Generally, bankruptcies of the chapter 7 type are not in the account after ten years of the date of filing. On the other hand, bankruptcies of the chapter 13 type are not in the account after seven years of the date of filing. During this period, the bank would be keeping eyes on the credit score of the person, which would increase to help them get their belongings faster or fall to bring them misfortune. The longer the waiting period, the more chances of getting the approval.

It takes that long after bankruptcy to refinance because it is believed that the person cannot repay the debts on time. If the bankruptcy is a chapter 7 one, then the case is weakened as in this, the person is also not able to agree with the previous lenders. A bankrupt person must wait for this period to end before getting the appeal for a successful refinancing


Finally, it can be concluded that bankruptcy is when a person loses most of their belongings. If a person has gone bankrupt, then necessary procedures should be followed so that later it only becomes more accessible for the person to maintain a livelihood. Make sure to get knowledge of how to take care of valuable things like money.

On average, it takes one year to refinance after bankruptcy in chapter 13. In chapter 7 bankruptcy, the same period is extended to two years. However, it is the responsibility of the person to seek help from the government or any official platform so that it is easier for them later on.


One request?

I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️