Renting after Bankruptcy

Hi, can anyone help with this? I have done my homework on filing Chapter 7 but have one hesitation about filing: I am still renting. I am very concerned about being able to move, rent another place, or rent a house. I have no property of my own and I lost my job a year ago (employed currently!!). I don't want to file, but my income varies and I've lost the good interest rates on everything in the last year. I feel it would be smart in the bigger picture. I have 18 years of good credit, am 27K in and have suffered an R9, so credit is already damaged. Has anyone had to deal with landlords after BK? What did you do, or how did you sell your situation? Is this a stupid worry? Any thoughts would help me sleep better!

click HERE (http://www.bankruptcyforum.com/showthread.php?t=1443&highlight=renting+bankruptcy) for some information regarding your question.

Good Luck!

Thanks Todd for passing that on.

I worked in the property management field for a LONG time...

These days, it is a renters market. Those that are in good shape financially are buying houses, so apartment complexes can no longer afford to be TOO picky. Rules will vary depending on the management company.

The areas reviewed generally will be income/employment, rental history, criminal history, and of course credit. Credit is probably the biggest gray area: if you your income is low (generally needs to be 3X the rent, though some may like to see 3.5X or 4X) or if you have a criminal history or if you have a bad rental history, you have problems.

Credit, on the other hand, will not always black list you. When looking for a place, before paying an application fee-be honest. An apartment complex should have an outline criteria for rental, otherwise they face an increased likelihood of fair housing claims. Find out what their policy is regarding credit/bankruptcy. If they say there is no way they can work with it, you don't want to waste the application fee to find that out. Most of the time, it eihter won't be an issue on its own, or it may require a higher deposit.

The last company I worked with, we could allow 2-3 'negatives' without requesting a higher deposit, as long as the applicant had positive rental history. (Someone with no rental history and a couple of negatives would have had to pay a month's rent as deposit, rather than $150.) We didn't get a full copy of the CR, just used a company that sent us the results. (How many of each status account: X # of 1's, X # of 2's, X # of 3's, etc.) I believe we counted everything higher than 2 as negative. Since we only got a summary of the # of accounts, we wouldn't have even known of any BK filing.

I had your same worries, we just filed chapter 7 and are currently waiting for our bk to discharge. THEN we get the horrible news that our apartments are being converted to Condos. We do not have a lease as my husband is a Courtesy Officer working for the apartments manager. *we get free rent for this service* SO we will have to move as soon as it is sold and our thirty day notice is given.

I started looking ASAP. I was up front with the managements of every place I called. Only one complex turned us away and one Realitor. I actually signed our lease for our new apartment last week. We are still waiting for discharge too! I called out attorney, they wrote a letter to the management of the new complex that we would not include them in the BK. The manager asked for a hirerdeposit but not an insane amount, only the same as one months rent. It was actually easier to find someone to sign us now than before our BK.

Good luck and I say file now get your life and credit back so you can go on and learn from your mistakes in the past :)

I was worried about renting also. I just moved into a house from an apartment complex. I decided to rent from a private owner b/c I figured they would be less likely to run a credit check, but I was upfront and honest and told all of the owners that I had filed and none had a problem. I do have a good rental history and have never been late with rent.

Thanks everybody for your sharing your info. My paperwork arrives at the Courts tomorrow. Gotta get my life back, and your info. encourages me! Thanks!

Good Luck Copper!

......renting before Ch.7 BK discharge? My wife and I wanted to get an early start on looking for a place because we're scared about the possibility of a Relief of Stay being filed and then granted (which it probably would be) and then getting a notice to vacate before our discharge. Anyways, my wife and I (especially my wife) fell in love with this place and the owner didn't seem to have a real issue with our situation. He is an older gentleman, but exrtremely nice and appeared to be sort of clueless about what I was talking about when we explained our situation. He wanted us to do a quick rental app. (no fee to do so) and that was it.

I guess I'm concerned about having to leave our house (which we are surrending) before the discharge and then not being able to find a place to live because most of the homeowners we've spoken to seem to have an issue with BK's.

The house we found is in the same city, so my children will not have to change schools (that can be tramatic) and it's on a nice, quite street with plenty of other children as well. Man, this is a nice place and I fear that we won't find something like this again. Mostly what we have found is 2 bedroom townhouses/condos with small rooms and no basement (an apartment is out last resort). This house (a duplex divided by the garages) has three good sized bedrooms, 1-1/2 baths, a huge living room, dining room and a very functional kitchen and it has a full basement. I don't want this to slip away from us and then not be able to find one like this again. The city I live in has a lot of slab homes that are quite small for the price range we would like to stay in.

How do you convince the homeowner that you will be able to afford the rental payment before we recieve discharge? I know we can easily afford it because we are discharging about 2-1/2 times that of debt (mortgatge and CC's). I guess I just want to able to show that we are discharging this and discharging that and our income to debt will be good to prove to the owner that we will be able to pay the rent on time. Oh yeah, one last thing, the owner doesn't require a security deposit and I'm willing to offer a month's rent in advance to make it look better for us.......only if it is asked of me of course.

Our objection date is the 26th. We reaffirmed the house. DH got a new job, he will start it on Jan. 2nd. The new job is across the state. We are keeping the house (for credit sake) and listing it on the market to sell, and renting a house on the other end.

The house is owned by a realtor. He did NO CREDIT CHECK on us! My dh is a Manufactuing Engineer. The man asked what was bringing us back to the area (we mentioned we had lived there beofre, dd1 was born there). DH told him what company he was working for. The man was impressed by dh's position within the reputable company so he said "If you're good enough for xxxx, you're good enough for me". He gave us keys on the spot and had us come in the next day to fill out a quick lease.

So, sometimes a good job can go a long way!

......renting before Ch.7 BK discharge? My wife and I wanted to get an early start on looking for a place because we're scared about the possibility of a Relief of Stay being filed and then granted (which it probably would be) and then getting a notice to vacate before our discharge. Anyways, my wife and I (especially my wife) fell in love with this place and the owner didn't seem to have a real issue with our situation. He is an older gentleman, but exrtremely nice and appeared to be sort of clueless about what I was talking about when we explained our situation. He wanted us to do a quick rental app. (no fee to do so) and that was it.

I guess I'm concerned about having to leave our house (which we are surrending) before the discharge and then not being able to find a place to live because most of the homeowners we've spoken to seem to have an issue with BK's.

The house we found is in the same city, so my children will not have to change schools (that can be tramatic) and it's on a nice, quite street with plenty of other children as well. Man, this is a nice place and I fear that we won't find something like this again. Mostly what we have found is 2 bedroom townhouses/condos with small rooms and no basement (an apartment is out last resort). This house (a duplex divided by the garages) has three good sized bedrooms, 1-1/2 baths, a huge living room, dining room and a very functional kitchen and it has a full basement. I don't want this to slip away from us and then not be able to find one like this again. The city I live in has a lot of slab homes that are quite small for the price range we would like to stay in.

How do you convince the homeowner that you will be able to afford the rental payment before we recieve discharge? I know we can easily afford it because we are discharging about 2-1/2 times that of debt (mortgatge and CC's). I guess I just want to able to show that we are discharging this and discharging that and our income to debt will be good to prove to the owner that we will be able to pay the rent on time. Oh yeah, one last thing, the owner doesn't require a security deposit and I'm willing to offer a month's rent in advance to make it look better for us.......only if it is asked of me of course.

Well, it's been a little over 2 months since I posted this question and I have an update/question: First, I was unaware how long it would take for foreclosure to happen and I didn't know at the time that I would be in my house for another 6-10 months from now. Newbie mistake I guess.

This week, I noticed that this duplex was still for rent. I called the owner to see if it was still, in fact, vacant and if he had the opportunity to look at us as tenants. He called back this evening and he said our app. was mis-filed and he didn't review it. No biggie to me because the place is still empty. The guy has got to be losing money. The place has been vacant since the beginning of Oct.05. Anyways, he is very well aware of our situation and would like to sit down and talk with us this weekend and if he feels that we can swing it (which I have no doubt we can), the place is ours. Now, most people would say "Stay in the house and save your money." Well, I agree, but this place is perfect for us and piece of mind that I won't have to sweat this out is worth more in the long run. Piece of mind is priceless.

My wife and I have looked at some real dumps lately (which I'm surprised considering the area in which I'm looking), and every time we check a place out, we compare it to this place, and believe me, there is no comparison. I just know this is the place for us. It fits our needs and definately fits our budget. The crap we've been looking at is giving us bad feelings about when it comes down to crunch-time and we have to leave. As most of you know, I'm a musician and I need the basement for my jam sessions. An apartment is out of the question right now.

I know I can move whenever, but maybe if others here have faced the same situation, it may ease my mind a little and help me make a good decision.

Bassboy-I don't think you're making a mistake. Yes, you could stay in your house longer but there is no guarantee that you'll find a place (that is the right price, you like, is the right amount of space, etc.) in 3-6 months.

Go with your gut!

Bassboy-I don't think you're making a mistake. Yes, you could stay in your house longer but there is no guarantee that you'll find a place (that is the right price, you like, is the right amount of space, etc.) in 3-6 months.

Go with your gut!

Believe me Staci, my gut is telling me to get out and move on with my life.

Another question to anyone: Since the house has been vacate for the last 3 months, and because the owner is not advertising (I haven't seen the ad or a sign in the yard), it's probable that he won't find anyone to occupy it for a while. So, with that said, I would like to know if it's okay in asking to negotiate the rent a little or include the water and sewer. Remember, this is a house and I would be responsible for ALL utilities, mowing the lawn and snowblowing the driveway and sidewalk. It couldn't hurt to try, but if it's not recommended to try and negotiate, I won't ask.

I don't see any harm in trying... I'd go w/ trying to get a lower price on the rent rather than doing something w/ utilities. When I pay my bills, I know they're handled. Relying on someone else to do it-well, mistakes happen. KWIM?

And, you could perhaps work it out to move in officially Feb. 1, to give you a few weeks to get the moving details worked out. (My sister has been wanting to move when her lease is up, and went to look at a place on Monday. Picked up keys today-did it too fast in my opinion because now she is scrambling to transfer her kids to new schools, get utilities on, transfer her job-she works for a major drug store change, etc. Oh yeah-and she is having to pack & move!)

I don't see any harm in trying... I'd go w/ trying to get a lower price on the rent rather than doing something w/ utilities. When I pay my bills, I know they're handled. Relying on someone else to do it-well, mistakes happen. KWIM?

And, you could perhaps work it out to move in officially Feb. 1, to give you a few weeks to get the moving details worked out. (My sister has been wanting to move when her lease is up, and went to look at a place on Monday. Picked up keys today-did it too fast in my opinion because now she is scrambling to transfer her kids to new schools, get utilities on, transfer her job-she works for a major drug store change, etc. Oh yeah-and she is having to pack & move!)

Thanks Staci, I agree, trying to get a lower rent may be the best way to go.

The home owner had asked when we could move in and I told him that upon agreement and signing of the lease agreement, we could occupy within 30 days. I explained that we would need time to get packed and get the utilities set-up. I kind of gave him the idea that it would be mid Feb, or Mar. 01 depending on when we sign the lease agreement. I will not give specifics until everything is signed. He said, "Oh yes, I understand it will take some time to make all of the arrangements." Nice guy.

The real biggie, other than the place being perfect, it's in the same school district, so my kids will not be tramatized with having to change schools.

That is good, if you like the schools! For my sister, part of her issue was wanting to get out of the school district her kids were in! I'm just a little annoyed with her because she is annoyed with me that I won't ask my FIL to borrow his truck. Don't rush into something and then complain about it!

That is good, if you like the schools! For my sister, part of her issue was wanting to get out of the school district her kids were in! I'm just a little annoyed with her because she is annoyed with me that I won't ask my FIL to borrow his truck. Don't rush into something and then complain about it!

My wife and I are defiantely loving the schools. My oldest has a slight comprehension problem, troubles with sounding out words and also has a hard time staying on task and he gets easily frustrated. The school has been helping out ever since day one and what an improvement he has made. He is reading much better and is very proud of himself. He actually enjoys his schoolwork now. So, it's a real plus that we have the opportunity to stay in the same district. We fear that if we had to change schools, the extra effort to help him would get lost.

Well here in New York (brooklyn) It seems so hard to find an apt. Number one they want 900.00 for a studio. As I say NY is for rich people, Im a single mother and even though I make close to 30k thats still nothing. Most apts are with buiding management or realtors. I went to see this studio which I loved its 700.00 rent stablized and decent area. The company wants 1400 which is 1st months rent and security ok. But the agent wants 15% of the annual rent which is like 1258.00, So I would be paying close to 3000.00 just to get in the apt then the guy says oh you need good credit. Im so furious because Im stuck and that gets me very depressed. I work , and still nothing. I guess It isnt going to get much easier being that I filed chapter 7. What can I say?

you are right to think ahead. keep looking, try to get better pay, cheaper apt etc. its a life long struggle really. move if you have too.

To follow up on my recent posts.........WE ARE MOVING INTO OUR NEW PLACE MARCH 1ST!!!!! We were able to work with the owner of the house I've been raving about in this thread. Oh BTW, water, sewer and garbage pick-up are included in the rent (always was included.....didn't ask the guy at first). The owner is okay with our BK (actually, he doesn't check credit reports) and as long as we feel we can afford it (which is no problem), then the place was ours. We sign our lease agreement on Tuesday (01/31/2006).

:yahoo: :yahoo: :yahoo: :yahoo: :yahoo:
:yahoo: :yahoo: :yahoo: :yahoo: :yahoo:

Well here in New York (brooklyn) It seems so hard to find an apt. Number one they want 900.00 for a studio. As I say NY is for rich people, Im a single mother and even though I make close to 30k thats still nothing. Most apts are with buiding management or realtors. I went to see this studio which I loved its 700.00 rent stablized and decent area. The company wants 1400 which is 1st months rent and security ok. But the agent wants 15% of the annual rent which is like 1258.00, So I would be paying close to 3000.00 just to get in the apt then the guy says oh you need good credit. Im so furious because Im stuck and that gets me very depressed. I work , and still nothing. I guess It isnt going to get much easier being that I filed chapter 7. What can I say?

Yeah new york sucks period unless you are made of money. I wouldn't even consider living in the city if I made anything under 100k, and I've never even made much over 30k in my life living other places. I grew up detroit and was having the same problems with money, couldn't have full coverage car insurance for less than $400 a month, etc. At least NYC has alot of public transport, but it can still take you hours to get where you need to go. Which is another problem, theres only so many hours in a day. So I moved to florida. I pay less for 6 months of auto insurance here than I've paid up north for one month. If car breaks down, its 75 cents to take the bus. 30 cents for the L-train downtown. I don't smoke anymore, but you can buy Marlboros for 2.50. A 6 pack of brew for $3. The only thing here you will pay as much as anywhere else is gas. Groceries tend to run half the price with the exception of meat and dairy products. Its like making a lil less money but only spending half as much. Moving might be a good idea for you.

I was just discharged on March 6 and will be moving back to my Indiana from Illinois in June of this year. I was lucky, I guess. I found a gentleman and his wife whose sole occupation is that of property management. They own several units in the area where I intend to move. I filled out the application, got approved and received the lease from him in no time. I was up front with him about my credit, told him I had a Chapter 7 and was working on cleaning up my credit and my act. He knows it all and is willing to take the chance. I have been late a couple of times with my rent in the past couple of years, but given the disastrous power bills and a variety of other disasters, I think I have done fairly well in that regard. Unfortunately, my other bills suffered as a result. I moved to Illinois to be with my significant other and that fell apart last year. I was left with a bunch of bills to pay that made things impossible. I had been paying 2 car payments totaling 900+ dollars from November of 2004 until July of 2005 in addition to 300-dollar (December shot up to 475) per month AVERAGE power bills and all of it including an electrical storm that cost me 500 dollars in out of pocket repairs, diagnosis of basal cell carcinoma and related medical bills, a washer that stopped working and a water heater that needed repairs put me seriously "in hock." While I am not proud of having filed bankruptcy, I am happy to be getting out from under the 530-dollar van payment (my personal vehicle is paid for after 5 years at 393 a month) and am starting fresh not only from the debt perspective but in a new place nearer family and friends. I searched for a long time before I found someone whom I felt comfortable with discussing my credit situation. As they say, bad things DO happen to good people. I just intend to make sure from this point on that the bad things that happen are not the result of MY actions.

Good luck.

Glad to hear your great news T.O.D. If you've read through this thread, then you know that my wife and I have had the same luck. We found an absolutely beautiful house (side-by-side) to rent (we surrendered our home in Ch.7). We have 3-bedrooms, 1-1/2 baths and a full basement. IMO, the place is nicer than the house we had. It's also bigger.

The owner didn't have a problem with our BK. Actually, I think he was either totally clueless about BK (which I highly doubt), or he just didn't give a rats a$$. He said as long as we feel comfortable being able to pay the rent, then we could have the place.

We have 2 children, so there was no way we wanted to be all cramped up in an apartment. Don't get me wrong here, the newer apartments are really nice and really spacious.........but for a family of 4, not suitable. Our place has enough room for all of us and we have a good size yard for our kids to play in. We have to maintain the yard, but I enjoy doing that anyways. The full basement is great because I can continue to play my drums and bass guitar (the other tenants can't hear them...........good sound proofing), my kids have a play area, we have an area with furniture and there is room for storage. We struck gold with this place.

We were also lucky enough to find a property owner that has done an impeccable job maintaining the house. Now, the property is only 9 or 10 years old and it didn't need too much, but there is new carpeting and flooring throughout (stain resistant and plush), new hot water tank, new A/C unit, new faucets and counter tops, freshly painted and all of the wood trim is stained. The place is beautiful. We've had a few visitors since we've moved in (on 03/04/06) and they were quite surprised at the place. I guess most people, and myself included, have a predetermined vision of what a rental property can look like (some people just don't care about what they own). Anyways, my point is that it's nice to have a place that someone has taken care of.

Best of luck to you T.O.D. and please keep us posted on how everything is turning out for you.

I recommend looking on sites like craigslist (www.craigslist.org) since these contain smaller landlords with places to rent that are more open to rent to folks with prior BK.

That or rent a place as a room or shared arrangement with no credit check. Myself, I was able to have a place before my filing and just stayed until I am ready to buy a home or rent a room in a house to save more. Good luck.

Mixxalot, please don't pull up old threads without new posts for several months to add comments - it's against our forum rules. Your observations are good ones, but in the future please start a new thread of your own to share them - thanks!

I was worried about renting also. I just moved into a house from an apartment complex. I decided to rent from a private owner b/c I figured they would be less likely to run a credit check, but I was upfront and honest and told all of the owners that I had filed and none had a problem. I do have a good rental history and have never been late with rent.

We found our rental on craigslist. We are surrendering our home in BK. We were upfront to the property managers/owner. They had abosolutely no problem with it. This house is 10 x nicer than our home. Three bedroom, 2 1/2 baths, 2 car garage, family room, two levels, on a culdasac, and one block from the lake. The best part is that it is $600 cheaper than what our mortgage was.

Tanya