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.
Renting An Apartment And Bankruptcy
You may believe that finding an apartment in Texas after filing for bankruptcy is close to impossible, but were here to help you achieve that dream. Landlords may be wary of the negative mark on your credit history, and everything will seem to go downhill from there. However, it is entirely possible, albeit challenging, to rent an apartment after declaring bankruptcy. Below is a guide to help you through the application process to ensure you get approved for a lease- the hardest part:
Is It Illegal To Discriminate In Rentals Because Of Bankruptcy
- Although it isnt illegal to discriminate in rentals because of a bankruptcy, my experience has been that the bankruptcy doesnt hurt, and can often help to rent an apartment
In the aftermath of the mortgage foreclosure crisis of the mid 2000s, lots of people had to file bankruptcy and let their houses go to foreclosure.
They were all able to find places to rent after moving out.
A few years ago I started getting requests for bankruptcy documents to help my previous clients qualify for a new mortgage.
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Eviction Orders And The Automatic Stay
It would not be the same if your landlord obtained an eviction judgment against you before filing bankruptcy. If that is the case, only if specific criteria are met will your bankruptcy law protect you from eviction? For example, if the landlord has a judgment for possession, a bankruptcy may not stay the eviction!
If you cannot do so, the landlord can Evict without first obtaining permission from the bankruptcy court. Most landlords will wait for the bankruptcy case to conclude before the added expense of proceeding while the bankruptcy case is ongoing.
How A Previous Bankruptcy Affects Your Rental Application
Bankruptcy should not necessarily prevent you from renting an apartment as there are several considerations a landlord must make with respect to denying or accepting your rental application.
Reporting a Bankruptcy The Effect It Has on Your Credit Score
Because a bankruptcy must be reported to the major credit reporting bureaus, it will remain on your credit report for seven years and will negatively affect your score. As property management companies typically require that you fill out an application and provide your credit information, this factor alone would not make renting an easy proposition. However, items, such as your credit score or a previous bankruptcy, are not the only factors weighed with respect to renting. Landlords must also assess your qualifications based on length of employment, lease payment history, number of evictions and current income.
Therefore, in addition to any bankruptcy filings, the property management company or landlord also considers your employment history. If youve been on the job steadily for quite a while, then a bankruptcy would not necessarily rule out the possibility of your renting an apartment. However, if youve been working in a temporary job, even for a long period of time, or have been permanently employed for less than a year, then a bankruptcy could definitely hurt your chances. Also, if youre unemployed or have previously filed for unemployment, a bankruptcy would just be an added mark against you.
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How Do You Rent A New Apartment After Filing For Bankruptcy In Nj
When you file for bankruptcy, you often feel marked by the filing. Whether youre buying a new car or looking for a new apartment to rent, you remain conscious that your bankruptcy will follow you. Bankruptcy remains reported for a time on your credit score. If you intend on finding a new apartment or a new house to rent, you will need to be open about your financial history. This includes any past bankruptcy filings or prior evictions. Some landlords will obviously reject people if they do not feel your records satisfy their needs for a tenant. This can be highly stressful for people who needed bankruptcy relief.If you are looking for a new place to live and are afraid that bankruptcy will hold you back from success, then you may want to consider a few factors before moving forward in order to know where you stand and how you can convince a landlord to give you a new lease on an apartment.
What Should I Expect When It Comes To Renewing My Lease
A bankruptcy filing should not impact your ability to renew your lease. That being said, many landlords use credit checks when deciding whether to offer or renew a lease agreement. Itâs entirely up to the landlord whether to renew your rental agreement when the term is up. This is true whether someone files bankruptcy or not.
If your landlord is an individual it may be helpful to explain to them that your bankruptcy actually makes you a more reliable tenant, as your disposable income no longer has to go towards debt payments or be subject to garnishments, making it easier to make your lease payments. If you’re planning on moving, can also explain this to any potential landlord and that, combined with a security deposit and good rental history, will help in finding a new rental, even with a less than perfect credit history.
Upsolve can help
If youâre struggling with more debt than you can ever hope to pay off, filing bankruptcy may be right for you. Upsolveâs Learning Center contains free educational articles like this one for anyone interested in filing a personal bankruptcy. Eligible individuals who want to file Chapter 7 bankruptcy but canât afford to pay for a bankruptcy attorney are able to use Upsolveâs free web tool to prepare their bankruptcy forms and file on their own .
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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.
Should I Rent An Apartment Before I File Bankruptcy
One alternative to discuss with your attorney is whether you should rent a new apartment before you file bankruptcy. Before making any decisions, its important to talk to your attorney about any new monthly payments. Your attorney may recommend signing a new lease before you file for bankruptcy, as it may be easier without the bankruptcy on your credit report. With the details of your situation, your attorney will be able to guide you.
Disclaimer: The information provided here on FilingBankruptcyAnswers.com may or may not apply to you, and should not be relied upon as legal advice. Speak to an attorney to discuss any information you have found here or anywhere online before making any decisions about your legal situation.
Filing Bankruptcy Answers
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How Bankruptcy Affects Renting An Apartment
When debt gets out of control, bankruptcy is sometimes the best method available to get ones financial situation back on track. However, filing for bankruptcy can have a number consequencesboth positive and negative. For example, due to the fact that many landlords conduct credit checks on prospective tenants prior to renting the properties they manage, a previous bankruptcy can impact ones ability to rent an apartment or house. However, this isnt always the case, and filing for bankruptcy doesnt automatically disqualify debtors from securing acceptable housing. There are, in fact, a number of factors that landlords examine when making eligibility determinations for prospective bankrupt tenants, including:
How To Rent An Apartment After Bankruptcy
Renting after bankruptcy is a fantastic way to build your credit. There are several things you can do to improve your chances of finding an apartment that will help benefit your credit situation.
Regarding bankruptcy and apartment rental, you must be upfront with the landlord. He or she is going to see your bankruptcy when they run a credit check anyway, so trying to hide or excuse the fact that you went bankrupt wont help you. Instead, be open and humble about your mistakes, and have proof, including proof of employment and a record of responsible borrowing since your bankruptcy, to support your search for housing. For example, if you recently purchased an automobile, being able to show that you have made your payments is a plus.
It also may help to look at smaller, privately owned apartment blocks instead of larger corporately administered and professionally managed complexes. A local landlord will have a lot more latitude to make decisions than a management company checking your financial statistics against a risk-assessment formula. A smaller company may treat you as a human being while some larger companies unfortunately sometimes treat people as a number.
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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.
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.
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How To Rent An Apartment After Filing Bankruptcy
A bankruptcy filing can certainly impair your ability to rent an apartment, even though it may have eliminated your debt or allowed you to create a payment plan that helped ease a financial hardship. But if you appear confident and communicate the strengths of your current financial situation, you may find an apartment to rent despite having filed for bankruptcy.
Renting During And After Bankruptcy: 3 Things You Need To Know
- Renting During and After Bankruptcy: 3 Things You Need to Know
You may be in Chapter 7 or Chapter 13 bankruptcy and wondering how to rent an apartment or home. While it may be difficult to purchase a home in a Chapter 13 bankruptcy, you may find help with renting an apartment.
Individuals who are deep in debt may not be able to repay those debts without help. The bankruptcy system provides that help. Through a bankruptcy case, people can get a fresh start to recover after a financial hardship. However, there are some concerns about bankruptcy that many people share. One concern that people share is renting during and after bankruptcy.
Renting during and after bankruptcy is a valid concern. You need to be able to provide a home for yourself and your family. Some people resolve this concern by entering a new lease or rental agreement before they file for bankruptcy. However, circumstances can change quickly. Sometimes, a person may need to move in while they are in Chapter 13 or right after completing a bankruptcy case.
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Filing Bankruptcy Increases Your Credit Score
It may be hard to believe, but filing bankruptcy usually helps your credit score.
This is because you may have a very high debt to income ratio, or a vast array of collection items, each dragging your score down by many points.
When you file for bankruptcy, all of those items go away and become resolved. Youre left with a clean slate. Your score may go up by as many as 50 points immediately. In addition, potential landlords may see that you do not have many obligations, which means youre more likely to be able to pay your rent.
It is also important to remember that all potential creditors do not consider bankruptcy a terrible thing. You will find many creditors willing to extend you credit as you should have more disposable income because you just discharged your previous financial obligations. Furthermore, you are not eligible for another discharge for many years. The Bankruptcy Code is written to discourage multiple filings. Some landlords will be more concerned about how much money you have to pay your rent than your credit history.
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.
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