Does Bankruptcy Affect Your Ability to Rent a Home?

For many people, bankruptcy provides a way to clean their financial slate and start fresh. Still, there are many concerns people who file bankruptcy have and one of the biggest of these is housing. People who have filed bankruptcy must wait a certain amount of time before they can obtain a mortgage. This leaves many people with just one option: to rent a home. However, this also presents challenges after filing bankruptcy. Our Orlando bankruptcy lawyer explains more below.

Bankruptcy and the Impact on Your Credit Score 

Any time someone files bankruptcy, it will have an impact on their credit score. Sometimes, this impact is quite minor while other times it can be significant. Immediately after filing bankruptcy, your credit score may drop by 200 points or more. Bankruptcy will also remain on your credit report for seven years if you file Chapter 13, and ten if you file Chapter 7. To reduce the impact on your credit score, it is critical that you start rebuilding it as soon as possible after bankruptcy.

The Rental Market in Orlando 

The rental market in Orlando is highly competitive, which makes it difficult for even the most eligible tenants to find a place to rent. Current rental prices for a one-bedroom apartment range from $1,500 to $3,000. Landlords can charge higher rents due to the increased demand, and they can also be more selective with who they choose to rent to.

Most landlords will check the credit score of any potential renter. This can make it extremely challenging if you have just filed bankruptcy and need a place to live. Fortunately, there are still ways to obtain landlord approval after filing bankruptcy.

How to Secure a Rental After Filing Bankruptcy

 A bankruptcy can complicate the rental process, but that does not mean renting a home is impossible. There are steps you can take to increase your chances of being approved for a rental. These include:

• Provide references: A positive reference from a previous landlord can greatly increase your chances of being approved for a rental unit.
• Proof of income: Submit pay stubs and tax returns to your landlord to prove your income and your ability to pay the rent.
• Negotiate with the landlord directly: Many rental units in Orlando are owned by a landlord who outsources the day-to-day management of the property to another company. In these cases, negotiating directly with the landlord can increase your chance of success rather than negotiating with the third party company. Property management companies are usually bound by certain rules set by the landlord, while landlords may be more flexible and willing to hear more about your personal situation.

Our Bankruptcy Lawyer in Orlando Can Minimize the Impact

 Bankruptcy does have many benefits, but there are some negative impacts, as well. At Anderson & Ferrin, P.A., our Orlando bankruptcy lawyer knows the strategies to protect you from these impacts while also giving you the clean financial slate you need. Call us today at 407-412-7041 or contact us online to schedule a consultation.