Back before 2006 there were lenders who would refinance to complete a Chapter 13--to basically pay off the balance that the debtor had to pay. I believe that all dried up around 2007, and in any case the rates became rather unattractive. Typically though the lender required timely payments to the Chapter 13 trustee (and mortgage if paid outside the plan) for the prior 12 months.
Even back then I don't know of any lender that would have allowed a refinance during the Chapter 13 with the Chapter 13 continuing.
Note, a Chapter 13 is different than a Chapter 7, which is what most people think of when they think of bankruptcy.
Actually, I just found out that I will benefit from my 5 year interest only ARM in July. My rate of 6.875% will drop to 2.875% decreasing my mortgage payment dramatically for a year. I spoke to the Bankruptcy trustee and they told me the extra amount that would of gone to my mortgage payment will be applied to my other debt. Thus, I will get out of my bankruptcy much sooner in 1 and a half years if things don't change...So, with that said I have a year to figure it out ...I probably wouldn't get a refi any lower than this...
It might be worth a call to a mortgage broker to inquire if they know of any private investors that would consider re-financing your mortgage during the Chapter 13. The problem is, the private lenders will want a higher-than-market interest rate. No doubt you are hoping to re-fi and get the new low, low rate available. Even a year after you complete Chapter 13, you may not be approved for a low interest rate loan.
The best thing you can do is complete the Chapter 13 process as soon as possible, and then begin making inquiries to lenders. Don't forget to talk to credit unions, as they are often more consumer-friendly.
Bottom line from the lenders we spoke with is no refi until you are done with the 13 and you will need to wait a minimum of one and most likely two years to refi after you are confirmed. Your only option is to approch your lender and ask about a loan modification or sell the house. My clients approched their lender and the lender did give a modification, but not until the BK was done.
Sold a house to a client a few years ago and we had to wait until just after the two year anniversary of their BK to meet lender guidelines to buy.
Tough decisions, best of luck.