Filing for bankruptcy can have a somewhat of an impact on your financial future, including your ability to rent a home. However, it’s not impossible to rent after filing bankruptcy. In fact, many people are able to rent again within a few months of filing. Bankruptcy laws were enacted to help people start over. If people couldn’t rent after filing, it would defeat the whole purpose. Here’s what you need to know about renting after filing bankruptcy.
The Impact of Bankruptcy on Your Ability to Rent
When you file for bankruptcy, it can stay on your credit report for up to 10 years. This can make it more difficult to rent a home or apartment, as landlords and property managers may be hesitant to rent to someone with a history of financial trouble. However, if you have judgments and a bunch of debts accumulating then you are in a worse position. Bankruptcy allows you to start fresh. This means that you can explain the situation and show the landlord you now have no debt. This will make it more likely that they will rent to you.
Tips for Renting After Bankruptcy
Rebuild Your Credit
One of the best things you can do to improve your chances of renting after bankruptcy is to rebuild your credit. This can be done by paying your bills on time, keeping your credit card balances low, and monitoring your credit report for errors.
Be Honest with Potential Landlords
When you’re applying for a rental property, it’s important to be upfront and honest about your bankruptcy. Explain the circumstances that led to your bankruptcy, and be prepared to provide documentation that supports your claims.
Offer to Pay a Larger Security Deposit
To ease the concerns of potential landlords, consider offering to pay a larger security deposit. This can help reassure the landlord that you’re serious about renting the property and that you’re committed to making your rent payments on time.
Get a Co-Signer
Another option to consider is getting a co-signer for your rental application. A co-signer is someone who agrees to be responsible for your rent payments if you’re unable to pay them yourself. This can help reassure landlords that they will receive their rent payments even if you experience financial difficulties.
Look for Properties with Less Stringent Application Requirements
Finally, consider looking for rental properties that have less stringent application requirements. This may include properties that are owned by individuals rather than large management companies, or properties that are located in less desirable areas.
Conclusion
Filing for bankruptcy may impact your ability to rent a home, but it’s not impossible to find a rental property after bankruptcy. By rebuilding your credit, being honest with potential landlords, offering to pay a larger security deposit, getting a co-signer, and looking for properties with less stringent application requirements, you can increase your chances of finding a rental property that meets your needs. Remember to work with a qualified bankruptcy attorney who can help guide you through the bankruptcy process and provide advice on rebuilding your financial future. Karra L. Kingston Esq. has helped many people get out of debt and start over.