Will You Ever Rent Again After Filing for Bankruptcy?

It's only natural to be concerned about your credit future after bankruptcy. A chapter 7 bankruptcy filing has the advantage of eliminating nearly all of your debt in a single filing. Another positive aspect of chapter 7 filing is that the entire action can be completed in a matter of months. Along with the positive points, however, come the potential for several aspects of your financial situation to be affected by the filing. In some cases, those wishing to rent are rightly concerned about bankruptcy. Read on to find out more.

1. Dealing With a Credit Application

More and more property management companies are requiring potential renters to fill out what amounts to a credit application before they are approved to rent. You may be asked about your bankruptcy by those with tougher tenant requirements. You should understand, though, that rental requirements can vary greatly from place to place — even within the same geographical area.

If you need to move and have a bankruptcy filing on your credit report, don't allow that to keep you from checking each property management company, apartment complex, and landlord individually. If not asked, you don't need to volunteer any bankruptcy information. If bankruptcy is a factor, it is never the only factor used to determine your ability to pay your rent on time.

2. Rental Worthiness Factors

Decision-makers use a variety of factors to determine your suitability for renting a property. In general private landlords and apartment complexes with lots of vacancies tend to be less-stringent on rental requirements than property management companies representing single-family homes for rent.

Another factor to be considered is your credit score. You can have a bankruptcy in your past and still possess a good or even excellent credit score since a bankruptcy filing only makes up part of the score. Some renters may be evaluated on their total credit picture that includes their other monthly obligations.

3. Tips for Renting After a Bankruptcy

There are a few more things to know that could help you rent property after filing for bankruptcy.

• The longer it's been since the completion of the bankruptcy, the better off you will be.
• Some rental places may be willing to accept a larger deposit to overlook the bankruptcy.
• If you know a move is in your future, try to move before you file.
• Having a good record of past rental payments or paying a mortgage are positives.
• Proof of a solid income is vital. Most rental places ask that tenants show income of at least three times the rental price. Extra points if you've been employed in the same location or field for some time.

To find out more about renting and other aspects of life after a filing, speak to a bankruptcy attorney as soon as possible.