Is it Hard to Rent While You are In a Bankruptcy with Bad Credit?

When you file for bankruptcy protection, you do so to help alleviate burdensome debt, protect what assets you can, and to get a fresh new financial start.

Filing does not come without some inconveniences. One of the things you are surely to lose during a bankruptcy is good credit, and if you lose your home also, these inconveniences can make it harder for you to find a place to live.

So, is it hard to rent while you are in bankruptcy with bad credit?

The answer to the question is obvious. The answer is yes, but it is not impossible either.

People get into financial problems for a variety of reasons, and they are not always of their own doing.

People who make a living by renting to others realize more than anyone why people get into financial trouble. If they have been in the business any length of time, they usually have heard every story of why someone cannot come up with the rent money.

Because of their various experiences, a landlord’s view of renters may be somewhat different than the normal persons. It is not uncommon for a renter who has been having financial problems to present a valid reason for their circumstances to a potential landlord, and as long as they have been making timely rent and utility payments in the past, be granted a rental space.

Bankruptcies, garnishments, and poor credit are red flags for landlords to ask additional questions.

If you live in an area where there is plenty of rental property, competition for the rental space will not be as great. Therefore, a landlord will be more willing to listen to valid reasons for your circumstances. If rental space in your area is at a premium and competition is keen, your odds of getting the rental property diminishes proportionately.

Landlords tend to overlook medical bill problems, student loan debt, and credit card debt, but most likely, they will not overlook a history of not paying utility bills or rental payments.

Here a some things you might try to increase your chances of renting property after you have filed for bankruptcy:

  1. Be up front and honest with the landlord. Let them know you filed for bankruptcy, why you filed, and how you have had a history of prioritizing your living quarters and utility support of such.
  2. Seek out landlords with multiple properties in lieu of a landlord who owns only one. That person may be depending on the income for other reasons, and they are not as likely to take a chance.
  3. Avoid seeking out rental property that has been vacant for long periods. Vacancy might be a sign the owner of the property is either having problems or has too stringent expectations for the property. Either can cost you time and money.
  4. Any good letter of recommendation from a former landlord of your payment history and respect for the property cannot do anything but help you.
  5. Offer to pay a larger security deposit if you like the property but the landlord seems hesitant.

Remember, you have a lot of control whether or not renting property is hard while you are in a bankruptcy with bad credit.

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