Can Filing for Bankruptcy Affect You as a Renter?

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Can Filing for Bankruptcy Affect You as a Renter?

Call: 888-297-6203

Bad things can happen to good people; however, this shouldn’t stop you from living your life. If due to some unfortunate streak of events, you end up accumulating a huge amount of debt, it should not hamper your chances of living a normal life. Many people are worried about the negative effect filing of a bankruptcy can have on their ability to get a house on rent. You can end up protecting your home in bankruptcy, but if bankruptcy appears on your credit report, will it create a problem for you as a renter? The answer, according to Dallas based bankruptcy law firm Recovery Law Group lawyers is NO.

Most of the ill-effects of bankruptcy are much-hyped to dissuade people from getting rid of their debts. Your ability to get accommodation on rent will depend on a lot of factors and not just your bankruptcy filing and discharge. Though, as a bankruptcy filer, you might have to give a larger security deposit or must comply with additional rules, but things aren’t as bad as projected. The time gap between your opting for a new rental agreement and your bankruptcy filing also makes a difference. Some of the most common factors that can affect your ability to get a house on rent include:

  • Rental history

Your rental history before bankruptcy filing plays an important role in you getting a house on rent later.

  • Date of the bankruptcy filing and credit history post-filing

Bad times can affect anyone, what matters is how you deal with them. Your credit history after your bankruptcy discharge will play a huge role in getting you a house. A potential landlord is impressed if they see that you have been striving in the right direction and making efforts to improve your credit score. This shows your determination as well as your character.

  • Reason for a bankruptcy filing

Many times, an unexpected turn of events might force even the best of people to fall behind on payments. While house hunting, a prospective landlord may ask you the reason for your bankruptcy filing. Admitting to the series of unfortunate events which are to be blamed for your bankruptcy might soften their approach towards you.

  • Your income including disposable income

A steady income is better than a large income anytime since you are more likely to pay your bills on time. Moreover, your disposable income, i.e. the income left after paying all monthly bills along with debt obligation also plays an important role.

Filing for bankruptcy might be difficult for you emotionally, however, it is the best way you could get rid of your debts. To know more about the positive effects of bankruptcy you can call 888-297-6023 and speak with qualified bankruptcy attorneys Dallas.