Can I Rent an Apartment After Filing for Bankruptcy?
If you are thinking of filing for a consumer Chapter 7 bankruptcy, you probably have a lot of questions. One of the most important for many people is whether or not they will be able to rent an apartment after a bankruptcy filing.
The reality is that it is often (though not always) more difficult to rent after bankruptcy. After all, the bankruptcy may stay on your credit report for seven to 10 years. But it is certainly not impossible and in some cases may even be easier than it would have been before your bankruptcy. This is because you may be able to show your landlord that you now have much more available income than before the bankruptcy. Also, many would prefer to see a bankruptcy on your credit report than a series of collection actions against you.
You will be able to find a place, but it will be a lot easier if you keep the following information in mind.
What Your Landlord Will Consider: Credit History
Most landlords will consider a number of factors, including credit checks, before deciding whether to rent to you. The importance of each varies according to your landlord, but they include
- Your current credit score including the indication you filed for bankruptcy
- Your credit history. In other words, they might consider that you paid bills on time before being pushed into bankruptcy by something catastrophic such as medical bills
- The timeliness of your rental payments in the past
- Whether or not you have steady employment
- Available income
- Date when you filed for bankruptcy or received a bankruptcy discharge
- Your ability to manage financial obligations
How Bankruptcy Affects Your Credit Report
Filing for bankruptcy can significantly impact your credit report. A bankruptcy will appear on your credit report and can remain there for up to 10 years. This can make it challenging to rent an apartment or obtain credit in the future. However, it’s essential to note that the impact of bankruptcy on your credit report will decrease over time. As you rebuild your credit, the negative effects of bankruptcy will become less significant.
How Long Do I Have to Wait to Rent an Apartment After Filing for Bankruptcy?
One of the most difficult times to try to rent an apartment is while you are actually going through bankruptcy. Your debts have not yet been discharged, but you still have the credit blemish of the bankruptcy case, and few landlords may not want to rent to you. Bankruptcy is frankly confusing for many attorneys, and even more confusing for landlords who may not understand that their debt is likely non-discharges since it came up after the date you file bankruptcy.
Progressively, as time passes, rental opportunities and credit as a whole start to rebound. As you work to stabilize your financial obligations post-bankruptcy, landlords may become more willing to rent to you.
Fortunately, there are a number of things you can do to make renting an apartment much easier.
Consider Renting Before Filing for Bankruptcy
If you are considering filing for bankruptcy and know you will want to move soon, you should assume the worst-case scenario that you will be much more limited in your rental choices.
Therefore, if you are planning to move to a new apartment, you may want to try to rent one before you file for bankruptcy. If you rent an apartment before filing, there is no bankruptcy to show up on your credit score. Other negative marks that led up to the bankruptcy will be apparent, but it still may be easier to rent. And once you’ve signed the lease, filing bankruptcy will have no impact on your rental.
Seeking debt relief through bankruptcy can ultimately lead to increased disposable income, which may make you a more attractive tenant to landlords.
Building a Strong Credit History
Rebuilding your credit after bankruptcy requires a strategic approach. Here are some steps you can take to build a strong credit history:
- Obtain a secured credit card and use it responsibly.
- Make timely payments on all bills and debts.
- Keep credit utilization low (less than 30%).
- Monitor your credit report for errors and dispute them if necessary.
- Avoid applying for multiple credit cards or loans in a short period.
By following these steps, you can rebuild your credit and improve your chances of renting an apartment or obtaining credit in the future.
Providing Proof of Income and Employment
When applying to rent an apartment, it’s essential to provide proof of income and employment. This can include:
- Pay stubs
- W-2 forms
- Tax returns
- Letters from your employer
- Proof of self-employment income (if applicable)
Providing this documentation can help demonstrate your financial stability and increase your chances of being approved for a rental property.
Renting from Individuals Is Usually Easier: Previous Landlords
It’s often easier to rent an apartment after filing for bankruptcy if you rent from an individual who owns a small multi-unit building or a house rather than from an apartment management company. An individual landlord is much more likely to be influenced by how you present yourself and your overall situation than a management company that may be inflexible about your credit score. Offering a higher security deposit can also demonstrate your financial commitment and improve your chances of securing a lease.
Likewise, you may have better chances in finding a lease with a landlord that you have prior rental history with.
Finding Bankruptcy-Friendly Apartments
While some landlords may be hesitant to rent to individuals with a bankruptcy on their credit report, others may be more willing to work with you. Here are some tips for finding bankruptcy-friendly apartments:
- Research rental properties in your area and look for landlords who have experience working with individuals with bankruptcy.
- Consider renting from private landlords or property management companies that may be more flexible.
- Be prepared to provide additional documentation, such as proof of income and employment, to demonstrate your financial stability.
Larger Deposit Requirements
In some cases, landlords may require a larger deposit from individuals with a bankruptcy on their credit report. This is because they may view you as a higher risk tenant. However, it’s essential to note that this is not always the case, and some landlords may be willing to work with you.
If you’re required to pay a larger deposit, make sure to negotiate the terms of the rental agreement carefully. You may be able to negotiate a lower deposit or a payment plan that works for you.
Present a Respectable Image
Landlords are often greatly influenced by how you present yourself. Landlords want a tenant who pays, takes care of the property and doesn’t cause trouble such as blaring music at all hours of the night and disturbing other tenants. It matters what you wear and how you communicate. Emphasizing your ability to manage paying rent on time can reassure landlords of your reliability.
When you talk to the landlord, you have an opportunity to explain your financial situation and why you will be a good tenant. Showing proof that you paid your rent on time for years may go a long way as will references from previous landlords. Additionally, having more disposable income post-bankruptcy can make you a more appealing tenant.
Consider Getting a Real Estate Agent
You may want to get a real estate agent whose services include finding apartments for people. They may already know of places where you will have an easier time renting.
Call Us for a Free Bankruptcy Consultation
We know that filing a Chapter 7 or Chapter 13 bankruptcy causes most people a lot of anxiety. We understand that you need to know what you are getting into, and we are happy to answer all your questions including ones you may have about renting an apartment after filing for bankruptcy.
If you are considering bankruptcy or would like to know about alternative options, call us for a free consultation with an experienced Florida bankruptcy lawyer. We can help you ease your mind and take back control.
Contact us at Ziegler Diamond Law for a free consultation by submitting this form. Or just call us directly at (727) 538-4188 in Clearwater, (813) 225-3c111 in Tampa or (352) 600-1326 in Mt. Dora.
