Renting After Bankruptcy
Can You Rent an Apartment or House After Filing for Bankruptcy?
Depending on the form of bankruptcy you file, the proceedings allow you to liquidate your assets to pay off your creditors, or retain assets while working out a repayment scheme. Regardless of the form of bankruptcy you file, there will be some restrictions imposed on you when it comes to spending. Because of this, you might wonder, “will I be able to rent after I file for bankruptcy?”
Difficulties of Renting After Bankruptcy
There is no law that prohibits you from signing a new lease agreement during or after bankruptcy. But you might find it difficult to enter into an agreement with a landlord after they run your credit and see the bankruptcy charge. Checking a credit history is standard practice when renting out property. Because of this, it’s advised that you notify the landlord prior to them running your credit. You should be forthright with all the information regarding your bankruptcy proceedings, the status of your bankruptcy, and details of your actual financial situation. You might also want to provide proof of income, to show you will be able to make rent payments in a timely manner.
You might also want to prepare a rental history for your landlord to prove you have not been evicted from previously rented properties. You should also try to procure recommendations from former landlords (provided you have a god relationship with them) to convince your new landlord of your good standing with rental obligations.
You might want to consider a co-signer with good financial standing to co-sign on your lease agreement. This might provide a sense of security for the landlord. If you default on your rent payment, the landlord would be able to go to the co-signer for the payment. Be careful of this, as you do not want to have a co-signer stuck with a payment you cannot make.
Bankruptcy does not mean you won’t be able to rent, it just means you might have to go through a few more extra steps to prove you are capable and able of making rent payments on time.
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