Considering Filing Bankruptcy In Pa
Life after bankruptcy is a chance to start fresh and move forward into a more financially stable future. If youre struggling with deciding whether to file bankruptcy, schedule a free, no-obligation consultation with Philadelphia bankruptcy attorney David M. Offen by calling 215-625-9600. In his 20 years of practice, Mr. Offen has helped over 10,000 clients get a fresh start. He can help you too.
Is Your Home At Risk If You Are Insolvent
Your home is at risk if either you or your partner are bankrupt depending on whether your landlord is a social landlord or a private landlord:
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Social landlord
If your landlord is a social landlord, they are much less likely to be concerned about whether either you or your partner are bankrupt. However, they are likely to be concerned if you are in arrears with your rent and it is the existence of rent arrears which is likely to cause the problem rather than your status.
- Private landlord
A private landlord may have a term in the tenancy agreement which enables them to forfeit the lease in the event of a tenant being made bankrupt. As this would be a residential tenancy, they will still need to go through the normal possession procedures in order to recover possession.
Tips On Renting While In Chapter 13 Bankruptcy
Life after bankruptcy is often frustrating, and life during bankruptcy can be extremely difficult. Filing Chapter 13 bankruptcy can negatively impact your credit, making it very difficult to obtain financing or even rent property. Particularly, it’s harder to find places that take people with active bankruptcies than it is to find apartments that accept discharged bankruptcies.
If you need to find a new home or apartment to rent during Chapter 13, there are ways to increase your chances for success while minimizing stress. Options range from specifically seeking rental properties that accept bankruptcies to compensating with a co-signer or financial documentation showing your ability to pay.
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Why Does Bankruptcy Makes People Better Rental Applicants
Chapter 7 Bankruptcy or Chapter 13 Bankruptcy improves a persons financial stability.
- Landlords are looking for people that will be able to afford the rent every month and who wont damage the property
- Someone with a recent bankruptcy and no debt, is safer than person with lots of debt but no bankruptcy
This is because bankruptcy IMPROVES your financial situation.
It removes lots of debts, but leaves all of the income and assets in place.
Your Current Living Situation
If youre current on your rent, the automatic stay order put in place when you file for bankruptcy will prevent the landlord from evicting you . However, you must still pay rent, and when your lease comes due again, your landlord might not agree to extend it another term.
Understand that the longer it has been since your bankruptcy, the less impact the bankruptcy will have when a potential landlord evaluates your rental fitness.
If youre behind on your rent when you file for bankruptcy, its a different story.
- The landlord has an eviction order. If, however, your landlord obtained an eviction order in state court before you file for bankruptcy, youll have to disclose that information to the bankruptcy court in your bankruptcy papers. In most states, the automatic stay wont stop the landlord from moving forward with the eviction.
- The landlord doesnt have an eviction order. The landlord can ask the court to lift the automatic stay and allow the landlord to take action against you.
Learn more by reading Will Bankruptcy Stop an Eviction?
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Can A Landlord Increase The Rent After One Year
They must wait until that lease ends. If a tenant signs a one year lease than after 11 months a landlord typically will issue a rent renewal letter. At that moment the landlord will inform the tenant that the rent will be increasing. Once the 12-month lease is up at that point the landlord can increase the rent.
Will Your Landlord Be Told If You Are Bankrupt
When you are made bankrupt or you declare yourself to be bankrupt, you are obliged to give details of all your creditors . So, if you are in arrears with your rent, your landlord is a creditor and they should be listed as such. Following the making of a bankruptcy order, the official receiver or your trustee in bankruptcy will contact all of your creditors and will ask them for details of the amount of their debt and how it arose.
If you are not in arrears of rent, then your trustee may feel that there is no need to contact the landlord as payment of rent would be a normal living expense. The trustee would not normally interfere with this in the same way that they would not normally interfere with you incurring other living expenses, such as payment of council tax and utility bills. The position may be different if the rent is very high and beyond what would normally be paid for that type of property and if the landlord is a family member.
It should be noted, however, that the official receiver will place a notice of your personal insolvency in The Gazette, which publishes legal notices and provides a permanent public record of your bankruptcy.
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Search For Rentals Near A College Or University
Landlords in these areas rent to students with little or no credit history on a regular basis and they just might be more lenient about your credit. Although these locations may not appeal to you if youre not a college-aged person, consider it a temporary situation. Once your finances and credit improve, youll be in a better position to move elsewhere.
What Can You Do
Ok, so weve established that your capability to rent apartments could be reduced in the period after declaring bankruptcy. That by no means makes it an impossible task. It just means that you will have to take extra measures to demonstrate to landlords that you can pay your rent.
If you have steady work and a history of stable employment, that can be a huge asset. Take with a letter from your employer stating that you are in good stead with the company. If you have never previously been evicted and have a good history of paying your rent on time, then you should provide a copy of your rent payment records as well. If you have somebody willing to guarantee you as a co-signer, this will also greatly improve your chances of being signed as a renter.
Remember that there are multiple types of bankruptcy. To fully understand whether or not you should file for bankruptcy, and which type, you should speak with a bankruptcy expert like Kevin Thatcher. Depending on your needs, you may only need to consolidate your debt instead of filing for bankruptcy, which will allow you to better maintain your credit score and stay in good standings with future landlords.
For more information on your available options, contact our team today.
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Talk To A Bankruptcy Lawyer
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Will I Be Able To Rent A Philadelphia Apartment After Bankruptcy
Bankruptcy can often mean downsizing your life. That may mean giving up a house or moving to a less expensive apartment. Renting an apartment can be competitive. It is smart to look ahead and wonder whether you will be able to secure the housing you need in the future before choosing to file bankruptcy today.
While filing for bankruptcy will help you eliminate or pay down overwhelming debt, it is important to remember that it could impact other aspects of your life, including your ability to rent an apartment. You need to be realistic about your situation. A bankruptcy will appear on your credit report and most landlords will require a credit check before renting an apartment. Fortunately, there are steps you could take to improve your credit score immediately following your bankruptcy discharge.
Bankruptcy is designed to provide individuals and couples a fresh start. Many people who file for bankruptcy will be able to rent an apartment or even purchase a home. Realistically, if you filed for bankruptcy or are considering doing so, your creditworthiness is probably rather poor. The experienced Philadelphia bankruptcy lawyers at Young, Marr & Associates are available to help you get back on your feet. Call our law offices at 701-6519.
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Our Philadelphia + Bucks County Bankruptcy Lawyers Can Help
The relationship between renting, homeownership, and bankruptcy can be very complex. An experienced bankruptcy lawyer can help you navigate the filing process and protect your legal rights. To schedule a free and confidential case evaluation, call the law offices of Young, Marr & Associates at 755-3115 in New Jersey or 701-6519 in Pennsylvania, or contact us online today.
Bankruptcy Resource Center
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.
carolynkaye
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.
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Will I Be Able To Rent An Apartment If I File Bankruptcy
Posted by Walter Benenati | Benenati Bankruptcy
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The answer is yes. You may have to pay first, last, and security but rest assured, you will be able to rent. When I filed bankruptcy in 2008, that was one of my biggest concerns.
After going through a bankruptcy, you may wonder if the mark on your credit will prevent you from renting an apartment or purchasing a home. I can tell you, that as an Orlando bankruptcy attorney and as someone who has walked in your shoes- having filed for bankruptcy myself, this can ultimately put you in a better place financially.
Before filing for bankruptcy, you probably had bills you were struggling to keep up with credit cards, medical debt, personal loans, and more. With that weight now lifted, you will be in a better place financially. At the end of the day, your landlord cares most about whether you will be able to pay the rent every month and on time. You need to show that you are now in a stable financial situation, which can be done in several ways.
Here are some tips for renting an apartment post-bankruptcy.
Are There Alternatives To Chapter 13
Yes, there are many alternatives. Chapter 13 bankruptcy is often much more expensive than a Chapter 7 bankruptcy. You have to pay a higher attorney fee, and you also have to pay trustee fees. Sometimes your Chapter 13 plan payment can increase as well, making a Chapter 7 unaffordable.
Understand how much a Chapter 7 bankruptcy would cost and estimate qualify using the free calculator below. Understand the costs differences between Chapter 7a nd Chapter 13
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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.
Is It Time To Buy Or Rent An Apartment
You are empty nesters and you are thinking: Our five-bedroom family home sure seems a bit, well, large, not to mention a money drain. Its time to move to a smaller place. But now you need to decide whether to buy or rent. The idea of renting a house or apartment can be challenging for many longtime homeowners.
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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.
What Are The Requirements To Get Automatic Stay Protections After An Eviction Judgment
At the time your bankruptcy petition is filed, you have to certify to the court – under penalty of perjury – that state law allows you to cure the default that led to the eviction judgment in the first place. Additionally, you have to deposit all money that comes due within 30 days from your filing date with the clerk of the court. If you canât do both, your landlord can move forward with the eviction process.
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Actively Work To Improve Your Credit
By working with our Bensalem Bankruptcy attorneys, you have discharged a significant amount of debt. However, there are more steps you could take to improve your financial situation. Applying for a secured credit card is one way to start improving your credit score. Ensuring you continue to pay any current bills timely is also vital in keeping your credit score moving up. If you are taking these steps and being proactive, a potential landlord might be willing to overlook a recent bankruptcy.
Whats The First Thing I Should Do When Looking For A House
The first thing you should do before searching for rental homes is decide on an ideal budget. Consider how much of your income goes towards bills and what you have left over at the end of each month. Also, remember that when first moving in, you will need to account for at least a deposit and first months rent.
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Can I Rent After Bankruptcy
People delay or avoid bankruptcy because they are worried it will turn their lives upside. Unfortunately, the longer they wait to file the worse their lives actually get. Many are worried theyll be unable to rent an apartment or home because theyve filed for bankruptcy.
The truth is there is nothing stopping you from renting after you file for bankruptcy, but it can affect your ability to do so. Before you file or before you avoid filing its important to understand just how bankruptcy will affect your ability to rent a home.
Most landlords will run a credit report on you and will know youve filed for bankruptcy, and though they could deny you for this reason, there are usually more important factors they consider.
To find out what landlords look for when they check your credit, check out this article from NerdWallet.com.
Landlords are interested in your credit history because its a good indication for how you manage money. If your credit history is filled with repossessions, foreclosures, lawsuits and judgements, and late payments, this could increase the likelihood theyll reject your application. However, a less-than-perfect credit report alone is not a guarantee youll be rejected.
