Renting After Bankruptcy

Are you worried about finding a place to rent after bankruptcy? While it’s true that bankruptcy can have an impact on your credit score and financial history, it doesn’t necessarily mean you won’t be able to find a rental property. In this blog post, we’ll explore some tips and strategies for renting after bankruptcy, including ways to improve your credit score and increase your chances of getting approved for a rental. 

Whether you’re just starting the rental search process or you’ve been turned down by landlords in the past, this post will provide helpful insights and practical advice to help you secure the rental property you need.

How to Increase Your Chance of Renting After Bankruptcy

Landlords might take into account other factors when considering whether to rent you their property. You can increase your chances of renting an apartment or house after filing bankruptcy using the following:

  • Increased income
  • Steady employment
  • Bankruptcy discharge status
  • Improved credit history

Searching for Houses and Apartments that Accept Bankruptcies

Here are some things you can do after bankruptcy to increase your chances of finding an apartment or house. 

  • Look for a private owner. A private owner is more likely to listen to you and offer you a chance to succeed than a corporate employee who has marching orders.
  • Show proof of employment. The more time you have worked for your employer the better.
  • Show proof of timely rent payments. This is a key factor for many landlords. It’s impressive to show multiple years’ worth of timely rent payments, especially if they are the same landlord.
  • Explain why you filed for bankruptcy. Let the landlord know if you are ill or have experienced an unanticipated event.
  • Show that you can afford rent. Provide proof of your income and expenses to potential landlords or property managers. 
  • Seek out references. Look for people who can verify that you are responsible.
  • Get a co-signer. Most landlords will rent to someone with good credit if they have a person who can sign the rental agreement. If you fail to pay, the landlord will have two people to collect.
  • Make a larger deposit. Offer to pay over several months, if you can.

Don’t lose heart if you don’t succeed immediately. These techniques have been used by many people to locate a house or apartment following bankruptcy filings.

Available Income to Rent an Apartment After Bankruptcy

Potential creditors may not consider bankruptcy to be a bad thing. Many car loan lenders and credit card companies will gladly lend credit to borrowers who have “discharged” their bankruptcy debts. Creditors realize that you’re likely to have more disposable income now that you’ve shed hefty multiple bankruptcy filings. Creditors are aware that they will have up to eight years for collection without worrying about whether you’ll get rid of the debt in another bankruptcy.

Rent an Apartment From a Property Owner

A property owner is more successful than a rental agent. The property owner might be open to hearing your story and considering your situation, as opposed to rental agents who have to follow company guidelines.

Consider using the reasoning in the section “Available Income to Rent An Apartment After Bankruptcy” to talk to your landlord. A good landlord will care more about how much you can afford to rent the apartment than your bankruptcy history.

TIP: Landlords are looking for tenants who will pay on time and treat the property with respect. You can get attention from a landlord by providing receipts for multiple years showing that you have paid on time at the same property. This method has been successful so it is worth trying.

A Solid Employment History Will Help You Rent an Apartment After Bankruptcy

The landlord will also likely be interested in your job stability. They will likely be interested in your employment history and the following:

  • Your time in your current job (the more you worked, the better)
  • Permanent employment, as opposed to seasonal or temporary positions
  • Previous employment history (including gaps in employment)
  • Rate of pay
  • History of wages

Describe how your financial situation has changed since bankruptcy. Show the landlord, if possible, how paying off debt has allowed you to have more income for rent payments.

How Does a Bankruptcy Case Status Affect Renting an Apartment

A landlord might not rent to someone if your bankruptcy case remains active, even if they have not yet received a discharge. This is especially true if the bankruptcy case is Chapter 13. You might not get your new debt obligation approved by the court.

If your Chapter 7 bankruptcy remains pending, most landlords will not be willing to rent to you. A savvy landlord will know that you are responsible for any debts you have incurred after you file for Chapter 7 bankruptcy.

How Does the Bankruptcy Filing Date Affect Renting an Apartment

Many landlords won’t rent to you for the first two years after a bankruptcy case. This is because they will not be willing to rent to you if you file your bankruptcy date. The bankruptcy won’t have an immediate impact on your ability to rent if you manage your finances well and take steps to improve your credit score (more details below).

Credit History When Renting an Apartment After Bankruptcy

Even if you have not filed for bankruptcy, your landlord will still check your credit reports as well as:

  • Evictions
  • Judgments or lawsuits
  • Repossessions
  • Late payments or defaults with respect to other debts such as credit cards

Your application will not be accepted if you are still having financial difficulties.

Increasing Your Chances to Rent After Bankruptcy

These tips may help landlords see you as a sound rental risk.

  • Keep track of rent payments. You can show that you haven’t broken any leases or rental agreements before bankruptcy. Also, you can prove that you made regular rent payments using canceled checks, receipts, or letters from landlords.
  • Describe your situation. Many people file bankruptcy due to circumstances beyond their control. These include divorce, death, job loss, and illnesses. If you can prove that these conditions are unlikely to occur again, a landlord may be open to your case.

Find out what you can expect in life following bankruptcy. It might surprise you to find out that you can purchase a house faster than you think.

Do You Need More Help With Bankruptcy?

Are you facing bankruptcy and feeling overwhelmed by the legal process? Our experienced bankruptcy attorneys at Bruner Wright P.A. are dedicated to helping clients navigate the complex bankruptcy process and achieve the best possible outcome. We understand that bankruptcy can be a difficult and emotional time, which is why we provide personalized, compassionate representation to each of our clients. 

Other Services We Offer:

With over 30 years of experience, our attorneys have the knowledge and expertise to guide you through the bankruptcy process and help you get back on your feet. Contact us today to schedule a consultation and take the first step towards a fresh start.