What Apartments Accept Bankruptcies?

Bankruptcy often means big life changes, including your living situation. You may need to downsize your home or apartment to match your new financial situation. Unfortunately, this is often easier said than done. Most landlords will take a look at a potential tenant’s credit report before deciding whether or not to rent to them. Of course, a bankruptcy will appear on your credit report, which may hurt your chances of being approved by a landlord.  On the other hand, large amounts of debt may have been eliminated, making it much more likely that it will be easier to pay the rent.  

Can You Rent a Home with Bankruptcies?

You can absolutely rent a home with bankruptcies on your record, it is just going to be more difficult than usual. The more time that passes after your last bankruptcy, the easier it will be to find a home to rent. Additionally, having proof of a high, stable income will go a long way. Landlords are unlikely to care about past bankruptcies if you can show that you are more than capable of affording the rent.  Cash in an account certainly increases the likelihood of approval.  

Can You Get an Apartment After Bankruptcy?

Just like with homes, you can definitely get an apartment after bankruptcy. It will be more difficult, but as long as you have sufficient income, you should be able to find an apartment. It is important to not lose hope, as the process may take longer than it would if you did not have a bankruptcy on your credit report. 

Renting an Apartment After Bankruptcy

When attempting to rent after bankruptcy, there are some things to keep in mind that will make the process easier and more likely to end with you successfully renting an apartment. These are:

• Proof of Income: Most landlords only care about whether or not you can pay rent in full and on time. Providing them with proof of income can show them that you can easily afford the rent. This is often enough to dissuade any concerns they may have regarding your bankruptcy. 

• Find the Right Property: You may have to lower your expectations. It is unlikely you’ll be able to rent your dream apartment after a bankruptcy. Instead, search for apartments which advertise that they do not conduct credit checks or apartments that accept chapter 7 bankruptcy applicants. Additionally, properties with a private landlord may be easier to rent than those run by  a large rental company. This will allow you to connect with the landlord on a personal level without rigid rules.  You can explain your bankruptcy if need be..

• References: Landlords tend to trust the word of other landlords. If you can get positive references from previous landlords, it can have a large impact on your ability to rent an apartment. 

• • Co-Signer: A family member or friend with a good credit score can co-sign your lease. This will greatly improve your chances of being selected to rent the apartment, but it should not be done lightly. A co-signer legally assumes all of the financial obligations of the lease. This means that if you miss rent, it is the co-signer who is responsible for paying the landlord.
• Be Patient: Your apartment hunt may take a long time or you may have to settle for an apartment you don’t like for a couple of years. It is important to remember that this is temporary. As long as you work on rebuilding your credit, this will all be in the past soon. 

Remember, bankruptcy is not the end of your life. You will find an apartment eventually and improve your finances. 

Can Back Rent Be Included in Chapter 7?

Back rent is considered unsecured debt, meaning in most states, including Pennsylvania, it can be included in chapter 7 bankruptcy. To do so you will have to list your lease on schedule G of your bankruptcy forms. You will also need to include the amount of back rent owed as debt on schedule E/F bankruptcy forms. Finally, you will have to provide the court with your landlord’s name and mailing address. Doing all of this will ensure that your back rent is discharged under chapter 7 bankruptcy.  However, if you are still renting from the landlord, the landlord may evict you (after delay) for failure to pay the back rent.  So this option is best to address prior landlords and not current landlords.