Renting During and After Bankruptcy: 3 Things You Need to Know

Can You Rent an Apartment During or After Bankruptcy?

Yes, you can rent an apartment during or after bankruptcy, but it may be more challenging depending on your credit, income, and timing. Ascend specializes in this question as 392,000+ people have taken Ascend's free bankruptcy calculator and 187,971 (47.9%) of those individuals stated that they were renting.

• Landlords often review your credit report, which will show the bankruptcy
• Strong income, references, or a co-signer can improve approval chances
• Some landlords are more flexible, especially with stable employment

Short explanation:
Filing bankruptcy does not legally prevent you from renting. However, because it impacts your credit profile, landlords may view you as a higher risk. That said, many renters successfully secure housing by demonstrating financial stability after filing.

Example:
Someone who recently filed Chapter 7 but has a steady job and can pay a larger security deposit may still get approved for an apartment.

Should You Plan Your Housing Before Filing Bankruptcy?

It can be helpful to plan your housing situation before filing, but it’s not always required.

• Securing a lease beforehand can simplify the process
• Life circumstances may require moving during or after filing
• Each situation depends on timing, income, and urgency

While some people lock in housing before filing to avoid complications, others may need to relocate during Chapter 13 or after a Chapter 7 discharge. Flexibility and preparation are key.

Why Do People Worry About Renting After Bankruptcy?

Many people worry about renting after bankruptcy because of credit concerns and uncertainty about how landlords will evaluate them.

• Bankruptcy can lower your credit score
• Landlords may be cautious about past financial issues
• There is often confusion about what bankruptcy actually affects

Housing is a basic necessity, so it’s normal to feel anxious about how bankruptcy could impact your ability to find a place to live. This concern is especially common for renters who may need to move soon.
A renter considering bankruptcy might delay filing because they are unsure if they will be able to qualify for a new lease in the next year.

First, let's discuss whether you can rent an apartment in or after a Chapter 7. If you are unsure what the differences are between bankruptcies or which one may work better for you, you can understand the key differences in this article or watch this recent Chapter 7 vs Chapter 13 YouTube video Ascend just recently shot. Then let's discuss renting in Chapter 13, because this is where people usually have the most questions about moving while they're in a repayment plan. 

Can You Rent an Apartment While in Chapter 7 Bankruptcy?

Based on my personal experience, renting after bankruptcy is actually very easy and not as challenging as you may think. A lot of people are shocked when Ascend tells them how easy it actually was. 

Your bankruptcy filing shows up on your credit report for seven to ten years, it is important to be upfront with a potential landlord. The landlord is going to find out about the bankruptcy, so heading it off is generally the best way to handle the situation. 

Sometimes with bankruptcy your score may be lower than someone who had not filed bankruptcy. Because of this you may have to pay a larger security deposit if your bankruptcy has been discharged more recently. Rebuilding some credit post bankruptcy can really help improve your credit score which may lead to lower overall move in costs. 

Being open and honest about your bankruptcy filing can help you get a head of it and set you up for success. If there were extenuating circumstances, such as losing your job, a sudden illness, accidental injury, or the loss of a spouse, explain the circumstances to the landlord. If you have made the most of your fresh start from bankruptcy by keeping your bills current, your landlord may see your bankruptcy in a different light. 

Landlords understand that people are facing tough financial times. If they can see that you have a steady income and used your bankruptcy filing to get back on your feet, they may be more likely to rent to you. Many landlords may consider bankruptcy a good thing. You got rid of your unsecured debts, so now you have more income to devote to rent or lease payments. 

How Does Renting During Chapter 13 Bankruptcy Work?

While it may be difficult to purchase a home in a Chapter 13 bankruptcy, you may find help with renting an apartment.

Whether you need to ask permission may depend on the state. For example, in Minnesota, the court does not require you to obtain permission to obtain consumer credit or enter into a residential lease.

A few things to keep in mind when renting during a Chapter 13 case:

• Talk to your bankruptcy lawyer first. Some local rules might require you to get court approval or approval from the Chapter 13 trustee before you enter into a lease agreement. A 5 minute conversation can prevent a big potential problem.
• Make sure your attorney has your new address any time you move during your Chapter 13 case. You need to make sure you receive all notices and correspondence from your bankruptcy attorney, the bankruptcy court, and the Chapter 13 trustee.
• Keep your housing costs the same, if possible. Changing your housing costs could impact your Chapter 13 plan. If your housing costs increase or decrease, talk with your bankruptcy attorney.
• If you sign a lease after filing for Chapter 13 those payments are your responsibility. Since you signed the lease after entering Chapter 13, the bankruptcy case does discharge your liability for the payments. If you break the lease, you are liable for any damages for breach of contract.

Talking to your bankruptcy attorney is strongly recommended before you enter a rental agreement during Chapter 13. The unique facts of your case could change the process of renting or leasing a home during Chapter 13.

Is Your Chapter 13 Payment Too High?

One reason people struggle during a Chapter 13 repayment plan is that their payments are too high. If you move and your rent goes up, that potentially could make things feel even tighter. Which can ultimately lead to a bankruptcy dismissal instead of a discharge. 

Before committing to a plan, it's smart to compare all of your options. Ascend built a free calculator to help you do exactly that. You can try it out for yourself below. 

Can I Rent My House While in Chapter 13?

Not all Chapter 13 bankruptcies are the same. While it may make sense for one person, it may not make sense for another. There are precautions that you need to take to ensure that you're following all the rules of your bankruptcy and that you're not setting yourself up for a potential payment increase, or worse: dismissal. 

1. Someone moves in with family temporarily to lower expenses. 
2. Someone relocates for work but wants to keep their home. 
3. Someone realizes renting the property could help them afford their Chapter 13 payment. 

1. Inform your bankruptcy attorney before renting the property
2. Possibly get approval from the court or trustee
3. Provide details about the rental income and expenses

Tips for Renting a Home After Bankruptcy

It may be more challenging to find a landlord willing to rent a home or apartment to you after a bankruptcy, but it is possible. Some tips to keep in mind when renting after bankruptcy include:

• Ask questions before submitting applications. Ask whether the landlord rents to someone who has a recent bankruptcy before submitting applications. If the landlord has a policy of not renting to individuals who have just recently completed bankruptcy, you do not want to waste money on an application fee for nothing.
• Verify your income and employment history. Provide a letter from your employer confirming your employment history and rate of pay. You may also want to provide a list of previous employers with dates of employment. If you do not have gaps in your employment history, that could be a factor in your favor.
• Explain your situation. Prepare a letter explaining why you needed to file bankruptcy and how you have made the most of your fresh start. 
• Search out, private property owners. Individual property owners do not need to work within the constraints of corporate policies regarding prior bankruptcy filings. A private landlord may be more willing to listen to your situation and make a judgment based on your current situation, such as a stable job, no unsecured debt obligations, and sufficient income. 
• Be patient and shop around. It may take you several weeks of dedicated searching to find a suitable home to rent or lease. 
• Have references ready. Ask your employer, past landlords, and roommates to write references for you. References from friends and family can also be helpful, but professional references generally carry more weight.
• Improve your credit score. Some landlords place a lot of weight on credit scores. Ascend built a free credit rebuilding portal that may be able to help you get to 700+ credit score.
• Provide your rental history. If you have a good record of past rent payments, include those records with your lease or rental application. Make sure to include the landlord’s name and contact information so that the new landlord can verify the records.
• Have a co-signer for the lease. If you have someone willing to co-sign the rental agreement, that can help you find a place to rent after bankruptcy. The co-signer is responsible for the payments if you break the lease. A co-signer with a good credit rating and steady income can quickly improve your chances of renting after bankruptcy.

The Bottom Line — You can rent after bankruptcy, but it may take a little more work on your party. The good news is that you are in a better financial position to afford rent payments because you were able to get rid of your debts through a bankruptcy filing.