While bankruptcy can help ease many of your current financial hardships, it does have the potential to make certain things in your future more difficult. So many life events and large purchases rely heavily on your credit scores and history, and even if your bankruptcy did nothing but improve your financial standing, it can affect how businesses and potential landlords view you as a customer and tenant.
From a landlord’s perspective, it is easy to see why a bankruptcy in your recent past could raise a few red flags. Their rental property, be it a house or apartment, is their business, and you as a potential renter are also part of their business. As you are learning, however, a bankruptcy does not mean that you are left penniless, and you still have the ability to be a very reliable tenant. Below are some helpful hints in securing a lease for a home after bankruptcy:
- Seek Privately Owned Rentals: Many apartment complexes or property management companies are run by larger companies that will require extensive credit checks. Smaller companies or owner-run rentals often require only a deposit and first and last month’s rent.
- Inquire About Shorter Lease Terms: During your search if you are meeting with some resistance from landlords, ask about the possibility of shorter lease terms—maybe three to six months as opposed to 12 months. This is generally a lower risk lease for a landlord, and does not force you into an overwhelming commitment.
- Continue Building Your Credit: Bankruptcy does impact your credit initially, but if you hit the ground running and pay all bills on time and in full, your score will see steady improvement.
- Be Upfront and Candid: If a landlord does ask you about your credit, explaining your situation may help put them at ease, especially if you have established a track record of on-time bill payments.
While renting a home after your Valley bankruptcy can be challenging, it is also a big step in moving forward with your new financial life. If you are currently in debt but are hesitant to file for bankruptcy, speaking with one of our experienced Phoenix bankruptcy attorneys can help you decide if bankruptcy is the right choice for you. Call Curry, Pearson & Wooten at 602-258-1000 to get started today!