As A Renter, What Happens If I File for Bankruptcy?

When you have one question about how money impacts your life, it will inevitably branch out into several more. After all, money is integral to how we function in society, so a little stress over the subject is more than understandable.

For example, when it comes to renting a living space, you want to be sure you’re always in a position to make your payments on time.

But can bankruptcy get in the way? Let’s take a look:

If You’re Currently Renting…

Put simply, even if you do file for bankruptcy, you cannot be evicted as a tenant so long as you are up-to-date on your rental payments.

Some leases may include a clause that states the tenant has breached the lease if they have filed for bankruptcy; however, landlords cannot legally declare bankruptcy as their reason for enacting an eviction.

Moreover, a landlord cannot increase your rent or security deposit following a bankruptcy filing. That being said, it is important to note that the automatic stay that bankruptcy offers does not apply to your landlord’s ability to collect rent from you.

If You’re Planning to Rent…

As bankruptcy stays on the filer’s credit report for anywhere between seven to ten years, some renters may see it as a potential roadblock to finding a new space to call home. Thankfully, other factors also come into play when a landlord screens a prospective tenant.

For example, they will look for other signs of financial stability, including:

• Steady employment history
• Proof of regular income
• History of post-bankruptcy credit score improvements
• And more

Furthermore, your overall bankruptcy status may help if you’ve already successfully discharged your debt. The more time that has passed since your filing, the less likely it will make an impact on your ability to rent, regardless of whether you filed for Chapter 7 or Chapter 13 bankruptcy.

If You’re Planning to File…

While filing for bankruptcy may sound daunting, here at Dolaghan Law, we want to assure you that we can help make the process as streamlined as possible.

After all, not only does bankruptcy afford you a fresh financial start, but it provides you with a clean slate, lasting relief from debt collector harassment, and more! In other words, bankruptcy is not as intimidating as it may sound.

In fact, it’s the opposite.

So, are you’re ready to embark on your journey to financial rejuvenation and freedom, reach out to Dolaghan Law today by calling 904-354-4935! Because you’re not alone.