People who are struggling financially and cannot pay back their debts may file for bankruptcy to get relief. Unfortunately, some individuals focus on the disadvantages of filing for bankruptcy that they only file for bankruptcy when they are stuck financially and cannot afford to pay their own expenses. Many fear that filing for bankruptcy will make it hard for them to rent a home or an apartment. Some solve this by relocating to a new rental before filing for bankruptcy. It is true that filing can affect your ability to rent, but most landlords don’t just deny you simply because you filed for bankruptcy.
The reason why landlords run your credit history is to find out how you manage money. If they see signs of financial mismanagement such as numerous foreclosures, late payments, repossessions and so on, they may reject you. Landlords are aware that people who file for bankruptcy do so because of several reasons, not just because they do not know how to manage their finances.
A landlord may take your bankruptcy into consideration and figure out that you have enough disposable income that allows you to pay rent on time. If you have enough disposable income, then your history of bankruptcy is not as relevant to the landlord because it signals that you are back on track financially. To determine whether your disposable income is not a temporary thing, your landlord will also investigate your employment history. Your employment history shows how much you job hop and whether you are reliable as far as your obligations are concerned. Apart from this, your rental history will also be reviewed to see if you have ever been evicted and the reasons for that eviction.
Each bankruptcy case is unique and it is important to speak with an attorney about your specific situation. Our bankruptcy professionals will help answer any questions you may have and can help you make an informed decision if you’re considering filing for bankruptcy.
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