Can I still rent?

Tuesday, August 14, 2018 - 20:34


Some people are concerned that if they file bankruptcy they may not be able to rent a house in the near future. Or it may affect the rental property they are currently living in. This is a common question we hear as the majority of people who file personal bankruptcy with our office are renters.

Just like any other creditor, the number one concern of a landlord is if they are going to get paid. When a landlord sees that a potential renter has filed bankruptcy, they may be concerned. It’s important to be upfront with a landlord from the beginning. It’s better that they hear about your financial situation from you, rather than reading about it on your credit report. If you are upfront, it will give you an opportunity to explain the reasoning behind your bankruptcy and therefore give you a chance to let them know that you’re on the right track with your finances. 

To help you get a better understanding of how bankruptcy may affect your rental situation, here are some common questions we receive form our clients regarding renting and bankruptcy are:

Will this affect my current rental agreement?
Filing personal bankruptcy does not affect your current rental agreement. As long as you are current with your rental payments, and therefore there is no money owing to your landlord, there is no reason for the trustee to notify them of your filing.

What if I want out of my current lease?
Filing personal bankruptcy deals with all debts, whether current or future, that resulted from your conduct prior to filing. Provided that you signed your lease agreement prior to filing, any damages that result from non-payment of rent or breaking your lease contract can be discharged.

If I file personal bankruptcy will I be able to find a place to rent?
Filing personal bankruptcy has a negative impact on your credit rating that may affect a landlord’s decision to accept your rental application. However, the majority of people that we deal with are renters and many of them move during the course of their personal bankruptcy.

What if I owe money to an old landlord?
Owing money to landlord is no different than owing money to any other creditor so it can be discharged.

If you have more questions regarding bankruptcy and renting, contact our office today for a free consultation. We will be able to answer all of your questions and steer you in a direction that best suits you.