Renting After Bankruptcy
Can I Rent After Bankruptcy?
People who are in deep financial trouble and cannot pay back their debts often file for bankruptcy to get relief. Unfortunately, people focus too much on the drawbacks of filing for bankruptcy that they only file for bankruptcy when they are stuck financially and cannot afford to pay their own expenses.
Many fear that filing for bankruptcy will make it hard for them to rent a home or an apartment. Some solve this by relocating to a new rental before filing for bankruptcy. It is true that filing can affect your ability to rent but most landlords don’t just deny you simply because you filed for bankruptcy.
Why Landlords Run Tenant Credit History
The reason why landlords run your credit history is to find out how you manage money. If they see signs of financial mismanagement such as numerous foreclosures, late payments, repossessions and so on, they may reject you. Landlords are aware that people who file for bankruptcy do so because of a number of reasons, not just because they do not know how to manage their finances.
A landlord may take your bankruptcy into consideration and figure out that you have enough disposable income that allows you to pay rents on time. If you have enough disposable income, then your history of bankruptcy is not relevant to the landlord because it signals that you are back on track financially. To determine whether your disposable income is not a temporary thing, your landlord will also look into your employment history. Your employment history shows how much you job hop and whether you are reliable as far as your obligations are concerned. Apart from this, your rental history will also be reviewed to see if you have ever been evicted and the reasons for that eviction.
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It Depends On The Type Of Landlord
Private landlords are more helpful in situations where you have filed for bankruptcy. The reason for this is that they are most likely to make the final decision of whether to allow you to rent or not. They are more likely to take into consideration things such as your past rental history, current employment, and how you present yourself. How you present yourself simply means appearing confident, clearly explaining your financial situation, and having a more respectful image. You can find individuals willing to rent out individual rental properties in classified ads, or check Craigslist for local rental opportunities.
However, landlords that are part of associations cannot do this because there are rules and stipulations that they have to abide to. A large complex or management company will not consider your situation if they see your low credit score. You could offer a slightly bigger security deposit just to give them additional peace of mind, but that may not work either.
However, do not lie about your credit history because they will find out one way or another. In fact, people that are in the midst of bankruptcy should stay current with their rent payments and be great tenants. Just know that one day you may have to look for another apartment, and the landlord in that other apartment will want to know your rental history.