Does Bankruptcy Affect Renting an Apartment

Does bankruptcy Affect Renting an Apartment

Past Due Rent From Old Apartments

In a chapter 7 bankruptcy most of your unsecured debt is eliminated. This includes credit cards, medical bills, repossessions and judgments. If the land-lord has gotten a judgement against you for the past due rent you must list it in the bankruptcy petition. Even if he has the judgement its not to late to get the debt for past due rent forgiven. If the Land lord is garnishing your wages for the past due rent he must stop the garnishment once the case ids filed.

Past Due Rent Current Apartment

If the rent is for an apartment that you currently live in it may be time to move. The rent owed, before the case is filed, is forgiven in the bankruptcy. But, the rent that is accruing after the bankruptcy is filed will be due and not forgiven in the bankruptcy. In the short run, immediately after the case is filed, the land lord will not be able to evict you or collect rent due after the case is filed. This is because the automatic stay, that goes in to affect when the case is filed, forbids him from collecting many of the past due debt. But, shortly after the case is filed he will file the applicable eviction paperwork and get you out. For the period after you filed and you remained in the apartment he will be able to go after that debt as post petition debt.

Renting Apartments After You File Bankruptcy

Does bankruptcy affect renting an apartment after you file is a question really looked at on an apartment by apartment basis. Its true that any past due judgments and debts are forgiven in bankruptcy. This means that the new apartment doesn’t have to fear that the old apartment is coming after you for the old debt. In some cases filing the bankruptcy may make you a better credit risk after you file than before you file bankruptcy. This makes it easier for you to meet the rent due in the potential rental agreement. Once again though other factors will be considered when an apartment considers renting to you after you’ve filed bankruptcy. Some factors will be your current income, past rental history and of course your employment history.

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