While filing for bankruptcy can offer someone financial freedom, it’s not without its drawbacks. It’s no secret that this process will impact a consumer’s credit score for years after filing. However, this is a small price to pay for a fresh start. Unfortunately, many are under the assumption that this means you will never be able to rent housing until your credit report has cleared. Keep reading to discover why you can rent after bankruptcy and how a Memphis, TN consumer bankruptcy lawyer can assist you.
How Will Filing for Bankruptcy Impact My Ability to Rent?
While bankruptcy can impact your ability to rent a home, it isn’t the only thing a landlord will consider when leasing. Generally, prospective landlords will consider several factors before leasing an apartment to someone. Though they will look at your credit report, it is not the only element that holds weight.
It is important to note that if you are actively involved in a case, a landlord may be reluctant to rent to you. In the case of a Chapter 13 filing, a lessor may be hesitant as you must get the new debt obligation approved by the court, which can take time. Similarly, someone unfamiliar with the bankruptcy process may be unfamiliar with the fact that debt incurred after filing Chapter 7 bankruptcy is your obligation.
Aside from your credit report, a landlord will consider your income. Generally, as long as you make enough to consistently pay your rent, a lessor likely won’t heavily weigh your bankruptcy against you.
Another thing a landlord will look into is your rental history. Though you may have filed for bankruptcy, if you have a spotless rental record, they will likely consider your application. In many instances, filing for bankruptcy can be out of your control. However, if you’ve previously been evicted or missed many payments, this may be held against you.
What Should I Do if I Want to Rent After Bankruptcy?
If you’re looking for housing following a bankruptcy filing, understanding what to do is crucial. One thing you may want to consider is finding a private owner. Generally, these individuals are more willing to listen and understand your situation instead of a company or property management services.
Another thing you can do to help your case is to find a co-signer. A close friend or family member may be willing to act as a guarantor in the event you stop paying rent. While the responsibility of your rent falls on you, a landlord may feel more comfortable if someone with a good credit history will vouch for you.
Though many make bankruptcy seem like you’ll never be able to move on with your life, this is far from the truth. While this is not a decision that should be made lightly, you can still excel following your filing. However, in order to ensure you have the best chance for success during bankruptcy, it’s essential to enlist the assistance of an experienced bankruptcy attorney. At the Arnold Law Firm, our dedicated legal team understands how complex this process can be. As such, we will do everything possible to help you through this process. Contact us today to learn how we can assist you.