Filing for bankruptcy can rid your life of the financial stress you desperately want to escape from. Despite this, you may still wonder how something like bankruptcy, which temporarily affects your credit score, can impact tasks such as renting housing. The good news is you can still rent housing even after bankruptcy affects your credit score and history.
Here are four tips to help you rent housing post-bankruptcy.
Be Transparent
Honesty is the best policy; this truth stands firm when wanting to rent post-bankruptcy. When searching for a rental, be honest with the landlord about your circumstances. For example, you might share that your bankruptcy was due to unexpected medical bills, job loss, or other unavoidable events. A majority of individuals who file for bankruptcy end up filing due to unmanageable medical debt.
Suffice it to say that bankruptcy is not always due to financial irresponsibility, and your potential landlord will appreciate the clarification. Transparency can build trust and show landlords that you are taking responsibility for your past while working toward a better future.
Provide Proof of Income
Whether it’s post-bankruptcy or otherwise, landlords want to know that you can sufficiently manage the cost of the rent. That is why it is critical that you provide proof of income. You will typically provide this in the form of paystubs, tax returns, or an offer letter from your employer as proof of your financial stability. If you are self-employed, you can provide bank statements or profit-and-loss statements. Showing that you earn enough to comfortably afford rent can alleviate concerns and strengthen your application.
Offer a Larger Security Deposit
A security deposit is always helpful when renting to protect the landlord from losses due to damages and missed payments. The unfortunate misconception about bankruptcy is that those who file for it are financially irresponsible, but as previously stated, for many, that is far from the truth.
Despite this truth, some landlords may still feel some hesitancy if you have a recent bankruptcy in your history. Offering a larger security deposit won’t just demonstrate to the landlord that you have adequate funds to afford the rent but also give them a greater sense of security in the case of any mishaps.
Look for Landlords Who Are More Flexible
The truth is that major apartment complexes owned by corporations may be harder to get into after bankruptcy. These corporate-owned apartments often have more strict applicant requirements that require a squeaky-clean credit report. Instead, consider renting from independent landlords who may be more flexible and willing to evaluate your application on a case-by-case basis. If you have a good rental history and can provide references from previous landlords, this can further strengthen your chances of approval.
While renting an apartment or house after filing bankruptcy can be more challenging, it is by no means impossible. By being transparent about your financial past, providing proof of income, offering a larger security deposit, seeking flexible landlords, and working diligently to repair your credit, you can improve your chances of securing a rental property. Remember, bankruptcy is a step toward a fresh financial start, and with patience and persistence, you can rebuild your life and find a home that suits your needs.
Navigate Bankruptcy Seamlessly
If you are considering filing for bankruptcy and have concerns about navigating the process, a lawyer is the perfect solution for you. However, you shouldn’t just trust any lawyer with something as sensitive as bankruptcy. You need someone with experience who knows the ins and outs of bankruptcy law.
If you are in need of a bankruptcy lawyer in Maryland, look no further than Adam M. Freiman. With over 25 years of experience helping individuals through the bankruptcy process, Adam can guide you through every step of the way. Contact our office today to start your seamless bankruptcy journey.
