Renting After Bankruptcy

Claiming bankruptcy is a serious decision to make and although there are many negative consequences of filing bankruptcy under Chapter 7, for some it is an unavoidable step in wiping their financial slate clean.  We’ve already talked about buying a house after bankruptcy, but what about renting after your claim has been filed? Filing a bankruptcy claim can affect your credit rating for up to 10 years, making the possibility of renting after bankruptcy somewhat difficult.  But that does not mean that it is impossible.  By following these simple steps, you will be able to rent a place to live even just days after having your debts discharged! Want to know the answer to the question “Can I rent an apartment after bankruptcy?” Read on…

1.    Get your FICO score – paying a small amount to find out what your score is will be invaluable in the hunt for rental accommodation.  First of all, you should check it very carefully as mistakes do happen.  Make sure that all your debts have been properly discharged and if not, make formal requests in writing to each of the creditors in question, asking that they remedy the issue immediately.  Each inquiry into your credit history actually lowers your credit score, so if landlords ask for your permission to view your credit score, offer them a copy of your document instead.  This will save them time and money, and prove how honest you are being about your financial situation.

2.    Look for places to live – avoiding large apartment complexes and focusing on rental accommodation with an individual landlord may be the key to finding someone who will rent to you without performing a credit check.  Pay attention to ‘move-in specials’ or lots of rental signs in one area as it could be renter’s market, working in your favor.

3.    Organize documents – providing proof of consistent and reliable income and credit references from previous landlords will go a long way to helping build your image of a responsible renter.

4.    Negotiate with interviewers – talking to the landlords and convincing them of your financial security is not going to be easy for someone with bankruptcy on their record.  But remember that money talks, and offering a large cash deposit could make up for a bad credit history.

If your powers of negotiation aren’t quite cutting it, you do have other options:

1.    Get a co-signer – landlords view co-signers a guarantee that they will receive most, if not all, of the rent due to them if the renter lands on hard financial times.  Getting a friend or family member to vouch for you may help you get the apartment of your dreams, but make sure you pay your rent because if not, it could cause problems with your family as well as with your landlord.

2.    Visit a property management company that specializes in bankruptcy rentals –they will be able to locate places that understand your financial situation and negotiate deals to allow you to sign a rental agreement and start rebuilding your credit.

Trying to rebuild your financial record and increase your credit score after bankruptcy is not easy and although it may be difficult to find a landlord who is willing to take a risk on a potentially financially irresponsible tenant, renting after bankruptcy and foreclosure is not impossible.  Generally speaking, larger apartment complexes require a minimum of two years to have passed since discharging debts under Chapter 7, but there are always smaller independent landlords who are willing to overlook your financial problems and rent out great accommodation

To learn more about renting after bankruptcy and foreclosure, and also whether the personal bankruptcy process is right for you, consider filling out our free bankruptcy evaluation, which will put you in contact with a reputable attorney in your area.

Click on the following link to find out about the best credit card after bankruptcy.