Business & Finance Bankruptcy

How to Get Housing After Bankruptcy

Moving, whether it's to a rental of buying a home, can be very difficult when you don't have a great credit report. When we talk about how to get housing after bankruptcy we're talking about how to get someone to trust that you will make your payments on time each month and that they won't have to worry about evicting/foreclosing on you.

The first thing to understand about renting is that no matter who you rent from at this point you are going to have to pay a large deposit. You will be required to pay a full months rent, plus the normal security deposit amount, in order to get an apartment. There's not really any way around this.

When you're looking at rentals there are two very different situations. There are property managers that aren't really personal, and there are personal landlords that you deal with directly. In the property manager rental there are going to be clear sets of rules that you will not be able to get around. In these cases they are not going to be very willing to forgive things like a bankruptcy on your report, because they have clear rules to follow without much give. You can find ones that will rent to someone with a bankruptcy, as long as you pay a large deposit, but these can be hard to find.

When you're dealing with a personal landlord you have the chance to make your case. You can talk to them face to face--a lot of them will decide whether or not to rent to you based on their own personal feelings they get from you. Do you seem honest, do you tell a full story, do you look them in the eye and not try to lie to them about anything? It does no good to try and hide your history because everyone will see this as soon as they look at your credit report, so you should go ahead and tell them upfront about your history. They will care about why this happened, but don't spend too much time focusing on it, prepare a short, two or three sentence explanation, ahead of time. Did you have medical problems, a divorce, credit cards? This is what they really want to know. If you've done some credit building since then, like with secured cards or loans or other accounts, this is also a good time to point something like that out.

The most important thing when looking for housing after bankruptcy in this situation is to be honest, and to keep shopping around. Just because you've been turned down doesn't mean there isn't still something out there for you, so keep searching.

Leave a reply