Will anyone rent to you after bankruptcy?

Bankruptcy proceedings usually allow the defendant to liquidate his assets and pay off his creditors or retain his assets and set up a payment scheme to pay off his debts. During the duration of the bankruptcy and even after its termination, there will be restrictions imposed against the defendant on his spending. This is for the purpose of allowing him to rehabilitate from the effects of bankruptcy and to aid him in re-establishing his assets.

Generally, there is no law prohibiting a defendant in a bankruptcy proceeding from entering into a new leasehold within the duration of the bankruptcy or even after its termination. However, it would be difficult for him to find a landlord who would be willing to give him a lease after having been notified of the bankruptcy case. Some landlords usually would examine the credit standing of the applicant or his rental history before executing a lease contract. Therefore, it would be advisable to be honest with your situation and to notify the landlord of the bankruptcy proceeding, its status and your actual financial situation.

If the landlord finds that the reason for the bankruptcy is caused by something which was not your own doing, the former might consider your application. You may provide a rental history which would show that you never defaulted from any payments on the rent before the filing of the bankruptcy proceeding. A good rental history would work to your advantage specially if the record would show that you have never been evicted in any of your rented properties. It would also be helpful if you could get recommendations from your former landlords which may convince the lessor that you religiously complied with your rental obligations.

Some landlords would also prefer if the applicant could show proof of income. This may be helpful in appeasing the landlord that you could pay the rent on time. It will also be helpful if the applicant could give a large deposit for the rent. However, the applicant must also be vigilant in knowing the state law as to the limit on the amount of deposit for leased properties.

Another source of help is a co-maker. The applicant may request another person, who has a good financial record, to guarantee or co-sign the instrument of lease. The signature of the co-maker would serve as security to the landlord. This means that when the applicant defaulted in paying his rent, the landlord may go after the co-maker for the payment.

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