Sooner or later, something terrible happens in every family. It’s unusual for a person never to have an accident, divorce, or job loss which may lead to bankruptcy. This article will help you buy or rent an apartment after bankruptcy.
You should usually be able to buy a home two years after discharge. Many of the same factors for purchasing a home will also apply to renting an apartment after bankruptcy.
You can buy a car after bankruptcy at a slightly higher rate during your bankruptcy. You can often purchase a car at a normal rate within six months after filing bankruptcy. But, to accomplish this, you must not fall back into old habits of not making payments on time. My assistant maintains a list of car lots in the Louisville, Kentucky area which will finance autos to people who have recently filed.
How to Buy or Rent Home or Car After Bankruptcy
Whether or not you handled your bankruptcy responsibly determines what a landlord or car lot thinks of you. Did he have to find it out, or did you offer a reasonable and truthful explanation upfront?
Banks or landlords are in the business of lending money and leasing apartments. They want to rent or lend to you even after bankruptcy. They can’t however afford to take a loss.
They always ask your prior landlord if there were problems and whether you left the last place in good condition or not. If you are buying a car or renting a home, they will do a credit check before renting or lending to you.
You should know that banks own many apartment complexes. Unfortunately, these places won’t rent to you unless you meet their scoring systems. Also, unfortunately, their scoring systems penalizes a person heavily if you have filed bankruptcy and continue to have poor credit. So, look for small landlords who are more likely and willing to rent to persons who have filed for bankruptcy.
I suggest concentrating on renting from individuals instead of apartment complexes. There are listing services, but you will have to be wary since some of these services have very few real landlords. However, to rent a home or apartment after bankruptcy, you must often convince a landlord to accept your application and understand why you’re a reasonable risk. Steady employment, prior rental history of adequately caring for the property, and paying on time are all reasons to lend or rent to you.
Talk to the Potential Landlord about Your Bankruptcy
Wait until after they get to know you to bring up your bankruptcy but don’t hide it. You must answer the landlord’s or manager’s questions honestly and directly. It’s best to be upfront about your bankruptcy filing if you are wanting to rent an apartment after bankruptcy.
A landlord shouldn’t have to pry it out of you. They run credit reports so they will discover the bankruptcy. What they are concerned about is whether you will be a problem in the future. They want the rental payments of car or home on time; they require a renter to be a partner, not a problem. They want their property taken care of and they don’t want it destroyed.
Avoid Paying Application Fees for Apartments Only to be Denied
You may be wasting your time and money with the larger apartment complexes. The truth is, some of these apartment complexes are in the business of taking applications as much as they are in renting apartments. They charge an upfront fee for your application. However, if you contact a residential complex, I suggest bringing it up early and listening closely. If they don’t guarantee that bankruptcy won’t deny you an apartment, then don’t apply and waste your money.
Most apartment complexes have rules from which they cannot deviate. Unfortunately, if they allow one person to pay rent with a bankruptcy filing, they need to allow others or risk discrimination lawsuits.
Private Property Owners Might Rent to You Instead of Your FICO Score
You can bring up that you won’t be able to file bankruptcy on them. You can only get one Chapter 7 discharge every 8 years. I suggest, that you ask questions about the rental property before you start this conversation. Doing this allows the landlord to get to know you better. Most people can quickly evaluate whether a renter is honest and will pay the rent or not. Your body language, confidence, and choice of words communicate more than your FICO score.
Your job, employment history, and many other factors tell the private property owner more about whether you will take care of the rental property than your credit score. Talking to an individual landlord is much more like asking for a date. You may expect not to talk about some topics until a person gets to know and trust you.
Factors that Influence a Landlord or Car Lot Positively or Negatively
• Your Appearance and Your Car Make the First Impression
Show up with a car and clothes that show you take care of your belongings and yourself. If you arrive looking like you just had a bar fight they are likely to assume you’re going to tear up the apartment. Also, it’s ill-advised to smoke or drink while meeting the landlord.
• Honesty Goes a Long Way Towards Making a Good Impression
Expect a complete check of prior landlords and a credit check before you rent or buy a home or car after bankruptcy discharge. Also, remember that even though it may be your emergency to move in or get a car, it isn’t their emergency. Your honesty and friendliness helps your application. Also, remember to take personal responsibility for things, and you will go further. By providing all the information on time to the person who is taking the application they are more likely to be helpful and accepting.
• Prepare and Present a Reasonable Explanation
If you don’t offer any explanation, they often assume the worst. So, it’s up to you to explain how a divorce, job loss, or illness won’t happen again. Again, remember that your divorce or illness is your problem. Unfortunately, they can’t make it their problem and stay in business. If your financial problems are going to continue to prevent you from making on time payments they wont approve the application.
If they think you are planning to make it their problem, you won’t be able to rent an apartment or purchase an auto. Explain how the past will never be a problem for a landlord or lender. Prove it by bringing along proof of income, bank statements, your budget, rental history, and anything that will support you as a responsible individual. Bankruptcy happens to everyone but how you recover from it speaks volumes about your character.
• Landlords and Banks Invest in Property and Renters
You are a considerable risk. You either take care of the property and pay your rent payments timely or you don’t. If the risk is high, they must increase the security deposit, down payment, or rent to pay for the higher risk. Then, if you pay on time, maintain the property, and don’t cause problems, they will value you as a client. After that, you won’t have problems getting the next car or property.
Also, remember to take time to repair your credit file and work on your credit score so that the next lease or auto purchase is more manageable. Remember, you are putting all this behind you. Bankruptcy was the right decision because if you didn’t file bankruptcy, you would still have poor credit and be unable to pay.
You may still have some problems, but now you are more likely to be able to rent payments or buy a car after bankruptcy. Eventually, this problem of qualifying for an apartment lease passes with time. Work on your credit after bankruptcy by making payments on time. So, if you want to rent or buy a home after bankruptcy, follow these suggestions and read the bankruptcy manual.
Do Landlords Look at Credit History to rent an apartment after bankruptcy?
Usually, the landlord looks at the potential renters’ credit history to verify whether or not they have filed for bankruptcy or whether they are paying debt responsibly.
Generally, the landlords look for the following factors:
- Lawsuits
- Repossessions
- Bankruptcy
- Evictions
- Late payments on any debts
Sometimes, landlords do not approve your application if your credit report shows that you have continued being in default for your finances. If you want to rent an apartment after bankruptcy the landlord has to know he won’t lose money.
Bankruptcy Discrimination in renting an apartment after bankruptcy?
There are some factors on which landlords can not discriminate while leasing apartments and homes, including:
- Religion
- Sex
- Color or Race
- Marital Status
- Sexual Orientation
- Medical Condition (pregnancy, mental illness, physical disability)
However both employers in hiring and landlords in leasing can discriminate and not hire or lease to someone based on whether they have filed bankruptcy. It is legal for the landlord to discriminate against leasing an apartment based on whether or not you have filed bankruptcy. It is generally illegal for government entities to discriminate against people for filing bankruptcy.
The bankruptcy code, does make discrimination illegal if you already are an employee and the employer discriminates against you. But if you have not been hired yet the employer can choose to not hire you.
Landlords can similarly choose to not lease to someone who has filed. Your existing lease agreement is not automatically canceled just because you filed bankruptcy. Instead you can accept and continue to pay your lease with your landlord. Or you can reject the lease and terminate it. Your landlord however cannot terminate the lease if you are current and have otherwise not terminated the lease.
Call an Experienced Bankruptcy Attorney who knows how to rent an apartment after bankruptcy!
At my office, I handle bankruptcy cases daily, Chapter 7 and Chapter 13 bankruptcy cases, and foreclosure cases. I help my clients recover after bankruptcy and renting a home or car.
Call me now to get instant assistance. At my office, I talk to all my clients and ensure they get the proper guidance for their cases.
Resources for Bankruptcy
Louisville, Kentucky Bankruptcy Forms
How to Manage Home Mortgages In or Out of Foreclosure
Foreclosure Landlord-Tenant Lease Eviction Laws
Predatory Auto Subprime Car Loans
How to Get a 725 FICO Credit Score after Bankruptcy
How to Manage Your Car Loans in Bankruptcy
If you are facing bankruptcy, don’t delay because timing is crucial. I am here to help you. If you dont know how to rent an apartment after bankruptcy we do know some landlords which will take applications from people who have filed. So, contact my office immediately to start the conversation—Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.
