Can I Rent After A Chapter 7 Bankruptcy?
Many folks wonder how bankruptcy will affect them afterwards. A big concern I hear a lot is whether my client will be able to rent a home or apartment after bankruptcy. I always tell them, yes you can, you just need to be aware of the factors that landlords look at. So, what do landlords look for?
1. Income. Look at it from their perspective. Above all the landlord wants to know that you can pay them in full and on time. The first thing they are going to want to know is if you have a stable income that is enough to cover your rent. Most experts suggest trying to spend 30% or less of your income on rent. If your Chapter 7 bankruptcy is discharged, you will realize how much disposable income you actually do have to pay for things like rent when you aren't being tied down to debt.
2. Credit history. Wait, I know what you're thinking: Bankruptcy is going to show up on my credit history and a landlord is just going to throw away my application. Right? Not exactly. But, bankruptcy doesn't just show up on your credit report, you need to think about what your credit score looks like before you begin a bankruptcy. Until you file for bankruptcy and have a successful discharge, all of that unpaid debt is going to tank your credit score. However, when your bankruptcy is complete, a lot of your previous debt isn't going to count poorly against you anymore and you may actually be a better candidate to rent.
3. References. Somebody renting to you, more than anything, just wants to know that you are dependable. People want to know that other people trust you: asking people who know you personally. Try to talk to a former landlord who can vouch for you, or a superior at work, or even a coworker to put in a good word will help your apartment search.
You are interested in finding out if you can rent after a bankrutpcy. Does it sound crazy to say that a bankruptcy might really help you? A landlord just wants to know that you are going to be a responsible tenant. A lot of people find out that bankruptcy was the financially responsible decision that changed their lives for the better. With the second chance that bankruptcy can offer you will most likely be renting a house sooner than later!
1. Income. Look at it from their perspective. Above all the landlord wants to know that you can pay them in full and on time. The first thing they are going to want to know is if you have a stable income that is enough to cover your rent. Most experts suggest trying to spend 30% or less of your income on rent. If your Chapter 7 bankruptcy is discharged, you will realize how much disposable income you actually do have to pay for things like rent when you aren't being tied down to debt.
2. Credit history. Wait, I know what you're thinking: Bankruptcy is going to show up on my credit history and a landlord is just going to throw away my application. Right? Not exactly. But, bankruptcy doesn't just show up on your credit report, you need to think about what your credit score looks like before you begin a bankruptcy. Until you file for bankruptcy and have a successful discharge, all of that unpaid debt is going to tank your credit score. However, when your bankruptcy is complete, a lot of your previous debt isn't going to count poorly against you anymore and you may actually be a better candidate to rent.
3. References. Somebody renting to you, more than anything, just wants to know that you are dependable. People want to know that other people trust you: asking people who know you personally. Try to talk to a former landlord who can vouch for you, or a superior at work, or even a coworker to put in a good word will help your apartment search.
You are interested in finding out if you can rent after a bankrutpcy. Does it sound crazy to say that a bankruptcy might really help you? A landlord just wants to know that you are going to be a responsible tenant. A lot of people find out that bankruptcy was the financially responsible decision that changed their lives for the better. With the second chance that bankruptcy can offer you will most likely be renting a house sooner than later!