The majority of people who make consumer proposals or file personal bankruptcy with our office are renters. Most of those people have questions surrounding their current and future rental agreements. Here are some of the common questions we are asked:
Will this affect my current rental agreement?
Making a consumer proposal or 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?
Making a consumer proposal or 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 make a consumer proposal or file personal bankruptcy will I be able to find a place to rent?
Making a consumer proposal or 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 consumer proposal or personal bankruptcy.
Landlords like any other creditor are primarily concerned with getting paid. When they see that someone has a bad credit rating, made a consumer proposal or filed personal bankruptcy, their fears are heightened.
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.
