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Bankruptcy and the World of Rentals

A bankruptcy on your credit report does not automatically preclude you from being able to rent a place to live. It is a given that not all people have perfect credit. Foreclosures, repossessions, lack of steady employment due to the uncertain economic times, etc. are, unfortunately, a fact of life today. With that being said, you should be aware that potential landlords look at a variety of factors when deciding on potential rental clients:

  1. Those filing for Chapter 7 bankruptcy protection need to have their bankruptcy petitions discharged before a landlord will consider renting to you. Likewise, those filing for Chapter 13 protection should be able to produce current repayment plans that illustrate repayments as agreed.

  2. Potential landlords can look favorably on someone who had “good” credit before filing for bankruptcy and who is establishing decent credit post-bankruptcy.

  3. A solid wage earner is a desirable renter to a potential landlord. The longer you have been employed, the more likely it will be that cash will be available for those monthly rental payments.

  4. Many landlords require deposits; if you are able to provide deposit money you could be looked upon favorably by a potential landlord. CAUTION: “Be real” when looking for a rental property. Your rent should not exceed 30% of your earnings!!!

  5. Honesty is the best policy. A private landlord may not question you about any bankruptcy filings, but rental companies very well may bring up the subject. TELL THE TRUTH!!! Be factual, honest, and accurate with your explanation and offer as much information as possible about the worthiness of your current economic picture. In situations like this, a co-signer could also be very helpful.

Bankruptcy should have little effect as to your finding a residence to rent. If you have further questions as to this issue please contact Bankruptcy Attorney Carmen G. Soto, PA.

Client Reviews
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Carmen G. Soto, PA and her amazing legal team is Excellent!!!! represented my daughter during divorce and we would absolutely recommend her!! Thank you and GOD BLESS YOU!! Ing. Delgado and Family
★★★★★
Carmen G. Soto, is an excellent attorney. She is very patient, knowledgeable, professional and my favorite.... flexible with payment plans. I was in need of an attorney to secure my sons future, and Carmen with her knowledge and experience provided the support we needed. I can honestly say that as a man/father we never get a fair chance in the courtrooms concerning family matters but Carmen made sure the Court systems saw past that stigma and justice was rightfully served. I would highly recommend Carmen G. Soto and her staff. Anonymous
★★★★★
Never having to use an attorney before, I was quite nervous and skeptical about my first meeting. Carmen Soto, not only made my first experience very comfortable, but was very informative and quite knowledgeable in the field of family law and divorce. She was there every step of the way for me as a support system, and her confidence and expertise made my otherwise very difficult situation, a very positive one. I highly recommend Carmen Soto. She is an excellent and compassionate attorney who clearly outlines all your options and takes a personal interest in your individual situation. Anonymous