How Does Renting an Apartment Effect Bankruptcy

Posted by admin  at February 19th, 2010

If you have filed bankruptcy or are considering doing so, you may be concerned with the possible effects. Renting an apartment after bankruptcy is possible; you just need to be prepared.

Whether you’re just considering bankruptcy or have just been through one, you are likely to ask yourself this question. The good news is yes, there are plenty of places willing to give you a second chance. But as you may have discovered, many others won’t even consider renting to you. So how do you find those that are willing to work with you? You can start with our listing service which includes only properties where the owners and managers will consider renting to those with bankruptcy and or bad credit. You can also use your local listing service and call the numbers on the ads to ask if they would consider renting to you. Either way, you’ll need to be prepared to convince them that renting to you is a good business move for them.

• Documentation: When you go to rent an apartment or home after filing bankruptcy, it is imperative that you bring documentation to prove your income and ability to pay rent. Showing bank statements, pay stubs and any other forms of income besides your credit report will help to solidify a home. Some companies can be hired to help you with your apartment search after bankruptcy, but be aware of their fees and restrictions.
• Appearance: Creating a good impression is the first step in securing an apartment. People make evaluations based on appearance as well as the vibe they get from you. If they feel you are a good person and are respectful, they will be more likely to rent to you. Carry yourself well and come prepared to meet a landlord. Provide all necessary documentation even if you aren’t asked; show that you are dedicated and willing to do what is necessary.
• Be honest: it is important to be honest with your would-be landlord. If you have an impeccable renting history but had to file bankruptcy because you became ill then be upfront with your landlord. Your potential landlord will most likely do a credit check as well as check your previous rental history, so there’s no sense in hiding anything.

By approaching private landlords or small management companies, you are increasing your chances of obtaining a place to live. Bring references from past landlords, your employer and anyone you can think of that will help you seal the deal.

• Renting an Apartment after Bankruptcy: Be Employed: If you have filed for bankruptcy in the recent past and have no job with which to assure your ability to pay the rent, you aren’t going to be approved. Ideally, you should be gainfully employed for at least six months before attempting to rent an apartment, and you should be able to provide the landlord with your employer’s contact information as a reference. Further, bring with you at least two pay stubs to confirm your income. Make sure it is at least three times the amount of the rent.

If you have filed bankruptcy but can prove that you have a steady income, there is no reason for a private landlord to not rent to you. Renting from a well established and large rental company can be difficult because they typically have guidelines for credit that must be held consistent. Bankruptcy is not the end of the world. There is life after bankruptcy; you just have to be positive.