Renting an Apartment After Bankruptcy

After your bankruptcy case concludes, renting an apartment or house will be challenging for approximately two years because bankruptcy cannot be concealed. Therefore, most bankruptcy lawyers recommend securing housing before filing for bankruptcy.

However, if you need to relocate shortly after bankruptcy, positively representing your financial situation can enhance your chances of securing a house or apartment. Additionally, you can employ various post-bankruptcy credit strategies to rebuild credit after bankruptcy, obtain a car loan after bankruptcy, and more.

How the Bankruptcy Filing Date Affects Renting an Apartment

Although a bankruptcy filing remains on your credit report for eight to ten years, the impact diminishes over time. So, while you can expect many landlords to be reluctant to rent to you during the two years immediately after your bankruptcy case, the situation will improve.

If you're planning to file for bankruptcy and haven't yet filed, consider postponing it until you have found a place where you feel comfortable staying for at least two years. This strategy usually works well because if you continue to pay your rent on time, it's unlikely that you will be asked to leave.

As time passes, bankruptcy will have less of an impact on your ability to rent if you've handled your finances responsibly. You can also take this time to improve your credit report.

Finding Houses and Apartments That Accept Bankruptcies

Sometimes, you have to file for bankruptcy without securing housing, or you're forced to change locations shortly after bankruptcy. Here's a quick list of things you can do to improve your chances of finding a house or apartment after bankruptcy.

• Find a private owner. An individual is more likely to listen to your unique situation and give you a chance than a corporate employee with marching orders.
• Present evidence of employment. The longer you've worked for your employer, the more stable you appear.
• Provide proof of timely rent payments. For many landlords, this is the most critical factor. Multiple years of timely payments, especially to the same landlord, are impressive.
• Explain why filing for bankruptcy was necessary. Let the landlord know if you were sick or experienced an unexpected event.
• Demonstrate you can afford the rent. Explaining that you have minimal debts and plenty of available income to pay rent can help.
• Get references. Find people who will verify that you're responsible.
• Find a cosigner. Almost all landlords will rent to you if a cosigner with good credit signs the rental or lease contract. The landlord will have two people to collect from if you don't pay.
• Pay a larger deposit. Offer to pay for several months if possible.

If you aren't successful immediately, don't give up. Many people have used these techniques to find a house or apartment after filing for bankruptcy.

Tips for Renting an Apartment After Bankruptcy

Below, we explain some of the techniques described above in further detail.

Available Income to Rent an Apartment After Bankruptcy

Potential creditors don't always consider bankruptcy a bad thing. You'll find that many car loan lenders and credit card companies will eagerly extend credit to a borrower who "discharged" or wiped out debt in bankruptcy. Why? Creditors realize you'll likely have more disposable income now that you've shed hefty credit card payments and other debts discharged in your bankruptcy case.

Also, the timing rules regarding multiple bankruptcy filings will prevent you from discharging debt for quite some time. Creditors, including landlords, know they'll have up to eight years to collect without concern that you'll wipe out the debt in another bankruptcy.

Rent an Apartment After Bankruptcy From an Individual Owner

Most people have more success speaking with an individual property owner than a rental agent. Unlike rental agents who must follow the company's rental guidelines, the property owner of the home you want to rent might listen to your personal story and consider your unique situation.

When talking to the landlord, consider using the reasoning discussed above in the "Available Income to Rent an Apartment After Bankruptcy" section. The right landlord will be more interested in how much you have to pay the rent than your past bankruptcy status.

TIP: Landlords want tenants who pay consistently and use the property respectfully. One way to get a landlord's attention is to provide multiple years of receipts showing timely payments at the same residence. This approach has proved successful, so it's worth trying.

Solid Employment History Will Help You Rent an Apartment After Bankruptcy

Another factor the landlord will likely consider is job stability. Along with your employment history, the landlord will probably be interested in the following:

• length of time at your current job (the longer you were employed, the better)
• permanent employment (as opposed to a seasonal or temporary position)
• previous employment history (including employment gaps)
• rate of pay, and
• wage history.

Explain how your finances have improved since bankruptcy. Show the landlord how discharging debt has given you more discretionary income to pay toward rent when possible.

Your Bankruptcy Case Status Affects Renting an Apartment

If your bankruptcy case is still active and you haven't yet received a dismissal or discharge, a landlord will naturally be reluctant to rent to you, especially if you're in Chapter 13 bankruptcy. The landlord might not be willing to wait for you to get the new debt obligation approved by the court.

Also, most landlords won't be eager to rent to you if your Chapter 7 bankruptcy is still pending. However, a savvy landlord will at least understand that any debt you incur after the date you filed for Chapter 7 bankruptcy will remain your obligation to pay. If necessary, show the landlord the appropriate section in the article Which Debts Are Discharged in Chapter 7 Bankruptcy?

Your Credit History When Renting an Apartment After Bankruptcy

Your landlord will check your credit report even if you haven't filed for bankruptcy. The landlord will look for issues such as:

• evictions
• lawsuits or judgments
• repossessions, and
• late payments or defaults on other debts, such as credit cards.

If you appear to be still having trouble meeting your financial obligations, your application will probably not be approved.

Improving Your Chances of Renting After Bankruptcy

Here are the two tips many have found most helpful when persuading a landlord that they're a sound rental risk.

Present rent payment records. Show you didn't break previous leases or rental agreements with other landlords before bankruptcy, and you consistently made rent payments on time using canceled checks, receipts, or letters from previous landlords.

Explain your situation. Most people file for bankruptcy because of circumstances beyond their control, such as an illness, divorce, death, or job loss. A landlord might be sympathetic if you can show why those conditions aren't likely to happen again.

Learn more about what to expect during life after bankruptcy. You might be surprised to learn that you can buy a house more quickly than you realize.

Need More Bankruptcy Help?

Did you know Nolo has made the law accessible for over fifty years? It's true, and we wholeheartedly encourage research and learning. You can find many more helpful bankruptcy articles on Nolo's bankruptcy homepage. For instance, Nolo articles will explain what bankruptcy can do, what you'll want to avoid before filing for bankruptcy, and more. Information needed to complete the official downloadable bankruptcy forms is on the Department of Justice U.S. Trustee Program website.

However, online articles and resources can't address all bankruptcy issues and aren't written with the facts of your particular case in mind. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.