There are many things you need to know if you’re considering filing for Chapter 7 bankruptcy as a consumer. Many people are concerned about whether they will be able to rent an apartment after bankruptcy filings.
It is more difficult, though not always, to rent after bankruptcy. The bankruptcy can remain on your credit report for up to seven to ten years. It is possible, and sometimes it may be even easier than before bankruptcy. You may be able to show your landlord that you have more income after the bankruptcy. Many would rather see a bankruptcy on your credit report than a series of collection actions against you.
Although you will find the right place, it will be much easier to locate it if you remember these tips.
What Your Landlord Will Consider
Before deciding whether to rent to someone, most landlords will look at a variety of factors. Each factor’s importance will vary depending on your landlord.
- Your current credit score, including any indications you filed for bankruptcy
- Credit history. They might also consider that you have paid your bills on time before you were forced into bankruptcy by something more catastrophic like medical bills.
- The past timeline for your rental payments
- No matter if you are employed in steady work
- Income available
- The date you filed for bankruptcy relief or when you received it
How Long Do I Have To Wait To Rent An Apartment After Filing For Bankruptcy?
If you are going through bankruptcy, it is the worst time to attempt to rent an apartment. You are still unable to pay your debts, your situation is not settled, and very few landlords will rent to you. You may not be able to explain that you are legally required to pay any debts acquired after you file for Chapter 7 bankruptcy.
The date that you filed for bankruptcy is less important as time goes by. It will be difficult to rent an apartment for the first two years. Then, it will be even more difficult to do so for the first three months. Once you have your discharge, your finances will become more stable.
There are many things that you can do in order to rent an apartment more easily.
Rent Before You File For Bankruptcy
If you’re considering bankruptcy and you know that you’ll need to move quickly, it is a good idea to assume that your options for renting a rental property will be limited.
If you’re looking to move into a new apartment, it might be worth renting one before you file bankruptcy. Renting an apartment is a good way to avoid bankruptcy appearing on your credit report. It may still be possible to rent an apartment without any other negative marks from bankruptcy. Once you have signed the lease, bankruptcy filings will not affect your rental.
Renting To Individuals Is Often Easier
If you rent from a person who owns a small multiunit building or a house, it is often easier to rent an apartment. A landlord who is influenced more by your personal and financial situation than a management firm that might be rigid about your credit score will be more inclined to rent your apartment.
It may be that dealing with a single landlord is more beneficial than working with a complex management company or large group of landlords. Management companies will usually only look at your credit reports and ignore your personal situation. A landlord will take into account your past rental history, your present employment, and your personal situation. Sometimes, a landlord won’t run credit reports if they like you. If they do, additional factors are likely to influence them. This leads us to our next trip.
Present A Respectable Image
Your appearance can have a huge impact on the decisions of your landlord. Landlords look for tenants who pay their rent, take care of the property, and aren’t disruptive to other tenants by playing loud music or blaring at night. It doesn’t matter what you wear or how you communicate.
Talking to the landlord will give you an opportunity to discuss your financial situation and explain why you are a good tenant. Referring to previous landlords and showing proof of your regular payment of rent for years can go a long way.
Contact Us To Get A Free Bankruptcy Consultation
Most people are anxious about filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. We know that it is important to understand what you are doing and are available to answer any questions you might have about renting an apartment once you file for bankruptcy.
Call us if you have questions about bankruptcy or want to learn more about other options. We can help you relax and regain control.
This post was written by Trey Wright, a lawyer with extensive experience in chapter 13 foreclosure in Pensacola! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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