Individuals who are in a deep financial issue can often find it difficult to pay their debts back or receive any type of relief. Many people focus on the drawbacks of filing for bankruptcy and they are hesitant to file at all. Filing for bankruptcy is something that you can do before you are stuck financially and unable to pay for your own expenses. Finding a way to get ahead of your debt can often be a better option for your future. Here is some information about renting after bankruptcy.
What many people fear is that by filing for bankruptcy you won’t be able to rent a home or apartment or even purchase real estate in the future. A good number of individuals will work and relocating to a new rental before they start filing for bankruptcy. In this article we’re going to answer some of the common questions on how bankruptcy may affect the way your file is presented to a prospective landlord. This can help you remain more informed on whether you should be seeking housing before you file for bankruptcy or after.
Why Credit History Is Important To Landlords
The main reason that landlords run a credit history is to find out how your money management skills are. If your landlord notices multiple foreclosures, late payments on rent, repossessions or other signs of financial trouble, they may deny you the rental. Landlords need to manage their level of risk and this often means choosing individuals that have prime credit histories. Individuals that appear to be better at managing money on paper while often serve as better tenants because they can pay on time.
Landlords will also be aware if you file for bankruptcy recently in bankruptcy can be cited as a reason not to rent an apartment to a prospective tenant. Any landlord may take a bankruptcy into consideration as chapter 13 bedrooms he could be eating into your disposable income. If you’re currently on a payment plan, this could impact your ability to pay on time.
A bankruptcy that is a few years old and a repayment plan that has completed can also be a positive sign to your landlord. It could show that you have enough disposable income now that your that serves all of and that you’re on a better track financially.
Your Employment History
In order to make sure that the income you are representing is not temporary income, your landlord may also request to look at your employment history. Disposable income can often be at peak during the summer for students or at certain times of the year for various industries. A landlord looking into your employment history will show that you have a reliable job and that it is likely that you will continue to have a consistent cash flow in order to pay rent.
If the landlord asks to see a paystub for your current position it’s also possible that they could be looking for the signs of wage garnishment. If there is a disruption to your income or ongoing wage garnishment this can serve as a warning to a potential landlord that you are missing out on the extra disposable income that can provide them with security on rental payments.
Your Rental History
As well as considering your finances any landlord is also going to look at your rental history. You may be billed to improve your status by finding a new apartment if you are able to acquire a reference from your previous landlord. Your rental history can detail if you were late on payments if you have ever been evicted and some of the reasons for your eviction as well. Your rental history can work against you if you are a disruptive tenant, if you have ever been evicted from her previous location or if you were regularly late on payments for your previous locations. Your obligations as a tenant need to be upheld in order to acquire future tendencies.
Renting after bankruptcy is certainly possible and depending on the status of your bankruptcy it can even be looked upon positively by a prospective landlord. If you are in need of new housing in the next 2 to 3 years and you are also considering filing for bankruptcy, it may be a wise idea for you to consider seeking new housing before you begin the bankruptcy process. This will make sure that you will not be held up by any type of repayment plan. If you are seeking new housing within the next 2 to 3 years after you complete a repayment plan, it may be wise for you to consider filing for bankruptcy immediately. Finishing your repayment plan and applying for a new rental can be a positive sign for your landlord. If you continue to let your financial situation slip over the next 2 to 3 years you could end up in a more damaging position when applying for a prospective rental.
If you need assistance with the bankruptcy filing process or you’d like some advice on when you should file for bankruptcy if you’re seeking new housing, contact our team of bankruptcy attorneys today.