Will I Be Able to Rent a House or Apartment if I File for Bankruptcy?

In today’s current economic climate, many people are forced to rent due to losing their homes in foreclosure and not having the credit or means to buy another house.  This means that rental property is really the only option for many households and landlords understand that.  People with perfect credit are more likely to be taking advantage of the great deals in the housing market right now due to short sells and bank-owned properties, so that leaves people with less-than-perfect credit to apply for most of the rental property available.  Landlords know this, so the good news is that bankruptcy will likely help your chances of renting more than hurt your chances.

As long as your bankruptcy has been completely discharged, your landlord will likely concentrate on the credit you’ve used after filing.  Your landlord will also recognize the fact that now that your debts have been discharged, you will likely have more cash flow to pay your rent and other living expenses.  This is a plus for him or her in assuring that money will be paid on time. 

One thing to keep in mind—whether you have filed bankruptcy or not—is that you should not attempt to rent if the amount is more than 30% of your gross income.  Keeping your search to one that is in the range of housing you can afford will be crucial to getting approved as a renter.  Another thing to keep in mind is that honesty regarding your financial past, including the details relating to your bankruptcy, will be important in your agreement with a landlord.  If you honestly explain the situation that led to your bankruptcy and are able to show how well you have handled your financial affairs post-bankruptcy, many landlords will work with you to make sure you have a home to live in.