It’s no secret that filing for bankruptcy can have an impact on your future finances. One area you may not have considered is how it can affect your ability to rent. Unfortunately, creditors and landlords can see this as a red flag, denying your applications. As such, the following blog explores whether or not it’s possible to rent after bankruptcy and what you can do to improve your chances of a favorable outcome. Additionally, you’ll learn how an Orange County consumer bankruptcy lawyer can help you navigate these difficult matters.
How Can Bankruptcy Impact My Ability to Rent?
While bankruptcy can help you obtain much-needed debt relief, it’s important to understand the impact this process can have on your life. When you file for bankruptcy, it can cause your credit score to plummet. Depending on the chapter you file, you can expect bankruptcies to remain for seven to ten years after the filing. The lower your credit score is, the more risky you are to lenders and landlords. While bankruptcy will not automatically result in your application being denied, it can be a significant contributing factor.
When you apply to rent an apartment or home, the landlord or management company will review your credit report. As such, they may see the bankruptcy on your report as a red flag, and this can lead to your application being denied. Generally, the more time that passes in between your bankruptcy, the less impact it can have on your ability to rent as long as you’ve continued to handle your finances responsibly.
What Can I Do to Improve My Chance of Approval?
If you have filed for bankruptcy and are looking to rent an apartment or home, it’s important to understand that there are steps you can take to improve your chances of a favorable outcome. Generally, talking to the potential landlord about the circumstances that lead to your filing, such as falling ill or suffering a loss, can help them understand the situation. You can also speak to references who can attest to your reliability and trustworthiness.
On a similar note, if you’re filing Chapter 7, you can explain to your landlord that you are responsible for all debt incurred after the filing, meaning you would still be liable for rent payments. This can help improve your chances of finding a landlord willing to rent to you. In some instances, landlords may be eager to rent to those who just finished bankruptcy, as they will have more disposable income to put toward rent as opposed to other debts.
One of the most impactful things that can help improve your chances of approval is to show that you have a reliable employment history. If you have been at your current company for a considerable amount of time, are full-time, and have little to no gaps in your employment history, a landlord may be more willing to rent, especially if you can provide proof that your finances have remained stable, if not gotten better, following the filing.
While bankruptcy has many undeniable benefits, it can also lead to issues after. At the Law Offices of Michael D. Pinsky, our team understands that navigating the aftermath of a filing can be difficult. As such, our team can guide you during these difficult matters so you can reap the full benefits of this process. If you’re ready to file, contact our team to learn how we can assist you.
