Bankruptcy is not a death sentence for your finances nor does it mean that you will never be able to rent after bankruptcy. A common bankruptcy myth is that people who file for Chapter 7 bankruptcy relief never recover financially. Many people believe they cannot qualify for credit cards or loans. They also believe they can never can own a new car or a home again. These assumptions are not accurate.
How To Rent An Apartment or House After Bankruptcy
When you file Chapter 7, the bankruptcy filing appears on your credit report for ten years. Most landlords check credit reports before approving a rental application. Landlords view bankruptcy filings in different ways.
Some landlords may be hesitant to rent to someone who filed Chapter 7. However, other landlords may view the Chapter 7 case as getting rid of your debts, thereby making it more likely you can afford rent payments. Therefore, renting after Chapter 7 may be more difficult, but it is not impossible.
Ways to Improve Your Chances of Renting After Chapter 7
Let’s go through some examples of how you can improve your chances to rent after bankruptcy.
- You may find that it is easier to rent an apartment than a house after Chapter 7.
- Some landlords may require a higher security deposit. Be prepared for this expense.
- Explain your situation. Most people file Chapter 7 because of events outside of their control. Write a letter to the landlord explaining what happened. The landlord may consider mitigating factors that led to the Chapter 7 filing.
- Highlight your employment history, positive rental history, and available income as reasons why the landlord should approve your rental application.
- Make sure that recent credit history reflects responsible money management. You may not be able to undo past financial problems, but highlight that you have not had any recent issues with credit.
- Work with an individual instead of a company. Companies may have strict policies that managers must follow. Individual landlords make decisions on a case-by-case basis, which is better for you.
- Have written references from your employer and previous landlords to submit with your rental application. Personal references can also be useful, but could be given less weight compared to professional references.
You Can Thrive After Filing a Chapter 7 Bankruptcy Case
Deciding to file Chapter 7 can be a complicated process. You must weigh many options. However, if you decide filing Chapter 7 is right for you, there is one thing to remember. You will survive Chapter 7, but you can also thrive.
Chapter 7 gives you a fresh start. You can be free of debts in as little as six months after filing for bankruptcy relief. The fresh start from filing Chapter 7 allows you to focus on rebuilding your finances for a healthier financial future. With time and dedication, you can rebuild your credit and rent a home after Chapter 7.
Do You Need Bankruptcy Help?
If you are struggling to pay debts, Chapter 7 might help. Try our free Chapter 7 calculator to see if you qualify for Chapter 7. You can also read our Chapter 7 Bankruptcy Guide for more information about filing Chapter 7. If you still have questions or need help finding a Chapter 7 bankruptcy attorney near you, please contact Ascend. Call or text us at 833-272-3631 to explore bankruptcy and other debt-relief options.