How bankruptcy affects rent?

By Tenant

It can become very difficult for someone who had filed for a bankruptcy to buy a new mobile phone most especially trying to rent an apartment to live. On the other hand, even if you had a bankruptcy in your record, you can still try to get a lease; how difficult it would be depends from the time you filed for bankruptcy to how much money you currently earn. You may need to go above and beyond just to prove that you are not a great risk to prospective landlords.

The effect of having a bankruptcy on your record is listed below.

• You may be rejected. It really is important to keep your credit history good. Landlords commonly do background checks on every potential tenant, they check every applicant’s credit history and nothing passes their eyes most especially bankruptcy. Credit history is one of the major deciding factors that will determine whether the landlord will approve your application or not. There are some landlords who would only approve your application if your bankruptcy case is over and closed which normally takes 9 months if you file for a chapter 7 bankruptcy and 5 years for a chapter 13. The landlord may opt of giving a monthly rent than a long-term one.
• You have to pay more. Even though you have a bad credit because of bankruptcy landlords can take you as a tenant that is if you can somehow guarantee your payment for rent. For example, landlords may have to ask you to pay as much as six months rents before you move in instead of only paying 2 months’ rent. They may also ask for a higher security deposit.

Remember that bankruptcy is a public record so it doesn’t really matter if you keep it as a secret to your landlord for they can know. If you are already renting when you filed for bankruptcy the landlord can either change your agreement to a monthly rent or not renew your lease at all.

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