There is a reason why people don’t like to file bankruptcy. It creates a permanent “red flag” over all you do, moving forward. How soon after bankruptcy can you rent an apartment?
Filing Bankruptcy
What is bankruptcy? In England, the bankers used to sit on a “bench,” called a “bank.” When they ran out of money, the sheriff would literally walk over and “disrupt” or “break their bench.” This was a sign that they were out of business.
Legally, bankruptcy is supposed to give you a fresh start. You have failed to satisfy your credit responsibilities heretofore, but you want to become responsible now. So, you went to the court and the judge found a way for you to start repaying your creditors.
Bankruptcy is supposed to help you, but it is a “red flag” to lenders. It means that you have not repaid your bills. So, why would you pay your rent on time?
Time Period
Thankfully, after your bankruptcy is discharged, you can still apply for an apartment. Then, it all depends on whether the landlord will accept your application or not. He has access to your credit score, which will list your bankruptcy. So, you might want to address the issue.
If you have a good job and character traits, back them up with an explanation as to why you filed for bankruptcy. What has changed? Can you prove that you are more responsible now?
Explain Financial Hardship
Explain your financial hardship and why bankruptcy was the best option. The good news is that bankruptcy is meant to allow you to continue to live your life. You are not supposed to be prevented from doing things like renting an apartment.
A month-to-month lease might be the best way for you to prove your responsibility. This is the least risky option for an apartment complex – the rent might be higher than a year-lease, but at least you have an apartment.
You can also look for apartment complexes with special deals. Rental management companies must fill their units. If they are struggling to do so, they might offer a free month or more lenient terms to those who have filed bankruptcy. Try your luck – be honest and confident.
Rebuilding Credit
What can you do to show that you are responsible now? You could take a credit counseling class. You could apply for a restricted debit card.
A restricted debit card might require you to deposit $100 into a bank account. You can only use that $100 for payments. This is a slow way to show that you are financially responsible with credit. The credit terms won’t be good, but it is better than nothing.
Jim Treebold is a North Carolina based writer. He lives by the mantra of “Learn 1 new thing each day”! Jim loves to write, read, pedal around on his electric bike and dream of big things. Drop him a line if you like his writing, he loves hearing from his readers!