As we discussed in our last post, one of the things you will need to prepare for when filing for bankruptcy is the impact on your credit report. Your credit not only affects your ability to qualify for new loans, it can also be a factor that landlords consider when you apply to rent an apartment, condo, or house. As such, you may be concerned about your ability to find housing after bankruptcy. Thankfully, however, there are things you can do to improve your chances of being approved for a lease.
Staying in Your Current Rental
If you were already renting at the time you filed for bankruptcy, you may be able to continue living in the same property. As long as you are making rent payments on time and following the other terms of your lease, your landlord is unlikely to evict you. The financial relief you obtain through bankruptcy often frees up funds that you can use for rent. When your current lease ends, your landlord may be willing to renew your lease based on your history as a reliable tenant.
Finding a New Rental
Applying for a lease at a new property can be more complicated after bankruptcy. You will not have a prior renting relationship with the landlord, and the fact that you have recently filed for bankruptcy will be immediately clear when the landlord runs a credit check during the application process. However, your credit is just one piece of information that the landlord will consider. You may be able to mitigate or offset the effects of your bankruptcy by providing other information with your application.
For example, the landlord will likely be especially interested in your past renting history, as well as your current sources of income. If you can show that you have been able to pay your rent in full and on time for the past several years despite your bankruptcy, this can demonstrate to the landlord that you will continue to do so. Similarly, a steady stream of income from your job or other sources, along with fewer obligations after a bankruptcy discharge, can show the landlord that you have the resources to afford rent payments.
If you find that your credit is still a concern, you can try other strategies. Simply speaking with the landlord directly and explaining your situation can often make a significant impact. You may also be able to negotiate by offering a larger security deposit, or by asking a reliable person to co-sign on your lease. However, it is wise to consult with an attorney or a financial advisor to understand the possible impacts of these decisions.
Contact a Hudson Valley Area Bankruptcy Lawyer
At the Law Offices of Robert S. Lewis, P.C., we help you prepare for bankruptcy and the changes it will bring to your life. We will work to ensure that your bankruptcy leaves you in the best possible financial situation so that you can continue to qualify for housing and afford to pay rent and other bills. For a free consultation with our Rockland County bankruptcy attorney, call 845-358-7100 today.