Have Any More Questions About Bankruptcy In Chicagoland
Now, as we mentioned earlier, its important to remember that the specific circumstances around bankruptcy will vary from person to person, or case to case. Similarly, its important to realize that the bankruptcy process can be complex and emotionally trying. Bear in mind that what comes immediately before and after bankruptcy can have a huge and lasting impact on your financial future.
While it is not strictly required to bring on an attorney for bankruptcy matters in the state of Illinois, many consumers will find that this process is made easier and, ultimately, more productive and beneficial in the long term with the assistance of an experienced legal professional.
Thats where the Gunderson Law Firm can step in. At Gunderson Law Firm, we strive to protect our clients assets to the full extent allowed by todays laws throughout the complex bankruptcy process, helping them get the debt relief they not only need, but genuinely deserve.
Moving through the bankruptcy process, we can also counsel you on realistic ways to avoid serious debt issues in the future. Whether you are a business owner, a wage earner, retired, or otherwise, we can address your specific situation with strategic plans to help put severe indebtedness behind you, so you can enjoy life again.
How Employment History And Credit Score Impact Apartment Rentals
Its important to remember that your bankruptcy does not exist in a vacuum, and landlords will consider the greater context of your overall financial situation.
For example, your employment history has a significant impact on your appeal as a prospective renter. Your landlords primary concern is that you will be able to make your rent payments, which means that your employment will be closely scrutinized for any potential red flags. Ideally, the perfect renter has a history of steady, long-term employment which is free of major gaps and lapses. From a landlords perspective, a tenant who is currently employed is going to be preferable to tenant who is unemployed, with or without a bankruptcy in the picture.
In conjunction with your employment, your landlord will also look closely at your credit history. Although bankruptcy has a temporary negative impact, in the long term, many former debtors find that their credit actually improves because they are no longer behind on their bills and other payments.
The Automatic Stay And Eviction Judgments
Itâs a little different if your landlord got an eviction judgment against you before you file bankruptcy. In that case, the bankruptcy law will protect you from eviction only if certain requirements are met. If you canât meet these requirements, the landlord can evict you without first getting permission from the bankruptcy court.
How Long Will It Take To Rent An Apartment
Most people will qualify for a rental within three months of a bankruptcy discharge. It is possible to rent or lease after bankruptcyand depending on how you handle your fresh start, it may even be possible to become a homeowner again without waiting seven years. Different lenders have different policies and some lenders will allow you to get a mortgage after thirty-six months.
How you handle will play a big role in what is available to you. After the early 2000s housing bubble and the 2008 financial crisis, many landlords have rented to couples and families who came through foreclosure and bankruptcy. They may be strict about late payments and will expect proof of income, but it will be possible to find a rental property.
Contact Us For A Free Consultation
An experienced Texas bankruptcy lawyer can help you determine the best way to handles leases and can help address any concerns you have about the bankruptcy process.
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Will You Be Able To Rent An Apartment After Bankruptcy
The short answer to the question will you be able to rent an apartment after bankruptcy? is yes, you will.
Now, for the longer explanation, let us start with this: bankruptcy is surprisingly common, with nearly 800,000 individuals and businesses filing for the 12-month period ending December 31, 2016. More than half of all filing were chapter 7, and more than a third were non-business chapter 13 filings. Additionally, its estimated that 1.21-1.25 million Americans will file for bankruptcy this year. As such, be assured that you are certainly not alone, and that you have nothing to feel ashamed about. Bankruptcy is a very loaded term that carries a lot of emotional baggage, but it is technically a legal process.
With respect to renting an apartment after bankruptcy: yes, it is true that most landlords will run a credit check, and as such a bankruptcy filing will show up. However, many landlords are more interested in a prospective tenants employment history and status, as well as their current debt situation. This is especially the case in markets where supply of rental housing exceeds demand, and as such prospective tenants with and without a bankruptcy in their credit history have more leverage.
Below are seven practical tips that can the chances that your rental application will be approved post-bankruptcy:
Improving Your Chances Of Renting After Bankruptcy
These tips might help you persuade a landlord that you’re a sound rental risk.
- Present rent payment records. Suppose you can show that you didn’t break your leases or rental agreements with other landlords before the bankruptcy and that you consistently made rent payments on time . In that case, a bankruptcy might not matter so much to a potential landlord.
- Explain your situation. Most people file for bankruptcy due to circumstances beyond their control, such as an illness, divorce, death, or job loss. Try explaining the events leading up to the bankruptcy and why those conditions aren’t likely to happen again.
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Chapter 7 Bankruptcy Options For Past Due Rent
If you file a Chapter 7 liquidation bankruptcy, you cannot just pay your landlord the amount you owe in order to bring your rental payments up to date. Once you file a Chapter 7, the bankruptcy trustee is in charge, and they can decide whether to reject or assume the lease. If the trustee rejects it, usually the landlord can go ahead and evict you. Should the trustee assume the lease, then you will have 30 days after the day you filed for bankruptcy to deposit the overdue rent amount with the clerk of the court handling the eviction. You can then make monthly payments and the automatic stay on your eviction will remain in place until your bankruptcy is over.
How Does Renting During Chapter 13 Work
During a Chapter 13 case, you cannot go into debt without court approval. However, a rental agreement or lease agreement for an apartment is not a loan agreement. You are promising to pay rent each month to live in an apartment or a house. You are not borrowing money. Therefore, you should not need court approval to enter a new rental or lease agreement for a home.
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.
- 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.
- The Chapter 13 case does not impact the obligations created by the lease. Because 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.
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Tips For Renting An Apartment After Bankruptcy
After a bankruptcy, I educated myself about personal finance and how to maintain a good credit score.
Learn 10 tips for renting an apartment after bankruptcy.
Finding an apartment to rent after going through a bankruptcy can be a challenge, but its definitely possible. In many cities, landlords cant afford to be quite as selective as they were in the past regarding potential tenants credit.
If youre in the situation of needing to find a place to live and are worried about how your bankruptcy will impact your apartment search, there are some things you can do right now to make your search easier and more successful.
Gather Character References And Letters Of Recommendation
Even if your credit score has taken a beating, there are other ways to prove you can be trusted to pay your rent each month. Gather character references and letters of recommendation from past landlords, roommates, or employers to help a potential landlord see past a foreclosure or bankruptcy filing.
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Renting After Filing Bankruptcy
If youve already filed for bankruptcy and are searching for a home to rent, it does not mean that you are out of luck. Some properties will take your bankruptcy into consideration and figure that you have more disposable income to meet your rental payments on time. They may look at factors such as your length of time at current job, current pay rate, and your prior employment to determine if they feel youll be able to make your payments each month.
Once youve located an apartment or house to rent, youll want to determine what the specific credit requirements are. Explain to the leasor that youve had some financial difficulties which lead to you filing for bankruptcy. Be sure to convey that you have every intention of paying your rent on time, and provide proof of a positive past rental history if possible.
You may find that youll have better luck dealing with an individual landlord as opposed to a large complex or management company. A management company will most likely look only at your credit report and not consider your situation. An individual landlord is more likely to take into consideration things like your current employment, past rental history and your personal presentation.
Keeping the above information in mind can help you when renting a home after filing for bankruptcy. If youre considering filing for bankruptcy, the experts at Parker & DuFresne can help. For more information or to schedule an appointment, call 733-7766.
If I File A Bankruptcy Will I Be Able To Buy A House Rent An Apartment Get A Credit Card Or Buy A Car
Submitted on Friday, July 5, 2019
Even if you have a bankruptcy that is ongoing, it will not necessarily prevent you from buying a house, and it certainly will not stop you from renting an apartment. It also wont stop you from getting a credit card, because you can always get a secured credit card. Finally, it will not prevent you from buying a car. Basically, what you are going to find is that if you try to do any of those things with an ongoing bankruptcy, the interest rates are going to be higher than if there was no bankruptcy.
After your bankruptcy is over with and you receive your discharge, a lot of credit card companies will use a discharge as a trigger to send you a credit card application. So it will not be difficult to get credit cards after you obtain your discharge. You will certainly be able to purchase a vehicle at a lesser interest rate than if the bankruptcy was ongoing. We have represented hundreds of tenants over the years, and while getting another apartment may be a concern of theirs , I have almost never had someone tell me that they could not find an apartment to rent due to their bankruptcy. Actually, the bankruptcy would put them in a better position to pay rent because all of their other debts are taken care of.
Buying a house can certainly be done after a bankruptcy filing. If you are looking for a market rate of interest, waiting a year after the discharge would help a great deal.
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Renting After Bankruptcy In Florida
Many clients ask us how a bankruptcy filing will affect their ability to rent a home or apartment. While bankruptcy can certainly make it more difficult to rent, it is not impossible. Potential landlords will take several factors into consideration when renting to you, including past bankruptcies. With some basic knowledge, there are ways you can improve your chances of renting your next home while in bankruptcy.
It Depends On The Type Of Landlord
Private landlords are more helpful in situations where you have filed for bankruptcy. The reason for this is that they are most likely to make the final decision of whether to allow you to rent or not. They are more likely to take into consideration things such as your past rental history, current employment, and how you present yourself. How you present yourself simply means appearing confident, clearly explaining your financial situation, and having a more respectful image. You can find individuals willing to rent out individual rental properties in classified ads, or check Craigslist for local rental opportunities.
However, landlords that are part of associations cannot do this because there are rules and stipulations that they have to abide to. A large complex or management company will not consider your situation if they see your low credit score. You could offer a slightly bigger security deposit just to give them additional peace of mind, but that may not work either.
However, do not lie about your credit history because they will find out one way or another. In fact, people that are in the midst of bankruptcy should stay current with their rent payments and be great tenants. Just know that one day you may have to look for another apartment, and the landlord in that other apartment will want to know your rental history.
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Look For No Credit Check Apartments
Search online for “no credit check apartments in your area. They do exist, although they may or may not be the kind of apartment you want to live in. Be sure to check out these places out in person as well as online before you consider applying to rent one.
A “no credit check” apartment might sound ideal if you have a bankruptcy on your credit report, but you’ll need to make sure it’s the kind of apartment you’d like to rent.
How To Rent Or Buy A Home Or Car After Bankruptcy
Sooner or later something bad happens in every family. In fact, its unusual for a person to never have an accident or go through bankruptcy. So, whether you buy a car or rent a home this information helps you recover after filing bankruptcy. Therefore, with this article, you will learn about how to rent or buy a home or car after bankruptcy.
Usually, you should be able to buy a home two years after discharge. Then, if you want to rent, many of the same factors for buying a home also apply to renting an apartment.
Then, as soon as you file, you can buy a car after bankruptcy at a slightly higher rate. Within six months, you might also buy a car at a normal rate. But, to accomplish this, you must first work on your credit file. Also, please note that my assistant has a list of car lots in the Louisville, Kentucky area.
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Be Proactive About Improving Your Credit Now
Just because you had to declare bankruptcy doesnt mean your credit is ruined forever. If you begin taking steps to improve your credit immediately after bankruptcy, your credit score will start to reflect the positive results. The sooner you raise your credit score, the easier it will be to get into the apartment you want.
In my article ‘How to Get a Good FICO Score After Bankruptcy’, I offer tips on how to get started on improving your credit score right away.
Here are a few tips to help get your credit back on track so it’s easier to rent after bankruptcy.
Talk To The Potential Landlord About Your Bankruptcy
However, wait until after they get to know you to bring up your bankruptcy. Of course, you must answer the landlords or managers questions honestly and directly. But its best to be upfront about your bankruptcy filing.
They shouldnt have to pry it out of you because they run reports for your bankruptcy and payment history. So, if you had problems in the past you need to show this wont be a problem in the future. He wants a renter as a partner, not a problem.
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Why Landlords Run Tenant Credit History
The reason why landlords run your credit history is to find out how you manage money. If they see signs of financial mismanagement such as numerous foreclosures, late payments, repossessions and so on, they may reject you. Landlords are aware that people who file for bankruptcy do so because of a number of reasons, not just because they do not know how to manage their finances.
A landlord may take your bankruptcy into consideration and figure out that you have enough disposable income that allows you to pay rents on time. If you have enough disposable income, then your history of bankruptcy is not relevant to the landlord because it signals that you are back on track financially. To determine whether your disposable income is not a temporary thing, your landlord will also look into your employment history. Your employment history shows how much you job hop and whether you are reliable as far as your obligations are concerned. Apart from this, your rental history will also be reviewed to see if you have ever been evicted and the reasons for that eviction.