Can I stay in My Apartment If I File Bankruptcy, and Can I Rent Another House or Apartment in the Future?
This is a question that many people ask themselves when filing for bankruptcy. If you are filing for Chapter 7 bankruptcy, then the answer is yes! You can stay in your apartment and continue to pay rent as you usually would on the rental property.
However, filing for Chapter 13 bankruptcy – which requires monthly payments – will depend on how much money you make each month and how much of your income goes to necessities like housing. In addition, chapter 13 and renting an apartment is a little more complicated in that the Bankruptcy Court may have to approve a new lease.
For example, as long as a tenant pays their rent on time, they may continue to reside in the apartment under the lease or by standard law landlord-tenant regulations. Therefore, it is critical to keep making regular payments while a bankruptcy case goes through court.
If a landlord has already begun evicting a tenant before the bankruptcy is filed, the landlord may be able to proceed with the eviction.
Talk to a bankruptcy attorney to get the answers you need!
An experienced bankruptcy lawyer will be familiar with how the bankruptcy code is applied where you live. Therefore, a law firm in your local area is a resource you will want to use to answer whatever questions you have about renting an apartment or house when considering a bankruptcy filing. Then, after you receive a fresh start, you should be able to rent a new apartment.
Table of contents
- Can I stay in My Apartment If I File Bankruptcy, and Can I Rent Another House or Apartment in the Future?
- Talk to a bankruptcy attorney to get the answers you need!
- Do I have to tell my landlord about my bankruptcy filing?
- Filing Bankruptcy and the Automatic Stay May Extend Your Ability to Keep Your Apartment
- Eviction Orders and the Automatic Stay
- What are the criteria for obtaining automatic stay protections after an eviction judgment?
- Can you rent an apartment while in chapter 7 bankruptcy?
- Can you get an apartment with bankruptcy on your record?
- Securing a new rental agreement for an apartment or house after a bankruptcy filing
- Contact a Michigan Bankruptcy Attorney Today to Discuss Bankruptcy and Apartment Rental Issues!
Do I have to tell my landlord about my bankruptcy filing?
Unless they are behind in their rental payments, there is typically no legal obligation to notify a landlord after a tenant files for bankruptcy. This information is irrelevant if you can make your payments timely. After you’ve filed, be sure to pay rent on time. Making rent or lease payments in time is critical to staying in your apartment after your bankruptcy case is filed.
Filing Bankruptcy and the Automatic Stay May Extend Your Ability to Keep Your Apartment
However, the Tenant may delay the eviction under Chapters 7 and 13 of the Bankruptcy Code’s automatic stay provisions. Once the lawsuit is filed, the Tenant will be protected by the automatic stay. Therefore, this eviction bankruptcy stay is not permanent.
The automatic stay stops eviction proceedings while a bankruptcy case is pending. The landlord has the option of requesting that the court allow the eviction proceeding to continue by filing a motion for relief from the stay. If the landlord does not file a motion, the automatic stay will remain in place, and the Tenant will be unable to be evicted.
Eviction Orders and the Automatic Stay
It would not be the same if your landlord obtained an eviction judgment against you before filing bankruptcy. If that is the case, only if specific criteria are met will your bankruptcy law protect you from eviction? For example, if the landlord has a judgment for possession, a bankruptcy may not stay the eviction!
If you cannot do so, the landlord can Evict without first obtaining permission from the bankruptcy court. Most landlords will wait for the bankruptcy case to conclude before the added expense of proceeding while the bankruptcy case is ongoing.
What are the criteria for obtaining automatic stay protections after an eviction judgment?
When you file for bankruptcy, you must swear to the court – under threat of perjury – that your state allows you to cure the default that resulted in the eviction judgment. You must also pay all money owing within 30 days of your filing date to the court clerk. If you are unable to complete both tasks, your landlord may proceed with the eviction procedures.
Can you rent an apartment while in chapter 7 bankruptcy?
You may have to pay, last, and security first, but be sure the rental is possible. Before filing bankruptcy, you probably had bills you struggled financially to pay off. The burden will fall financially.
Your landlord matters most whether you pay your rent every month and on time at the end of the day. You have to show that you are in a stable financial situation that can be done in several ways. Renting after a chapter 7 discharge is possible.
Can you get an apartment with bankruptcy on your record?
You can rent an apartment with bankruptcy on your record. There are a lot of people who rent their homes. Many of them are confronted with severe financial problems that have made them consider bankruptcy, so it’s no surprise that many renters want to know how filing for bankruptcy will impact their chances of renting.
Do bankruptcies clear evictions? Unfortunately no. An eviction will remain on your public record after filing bankruptcy, but you should still be able to rent an apartment or new house.
It should not be difficult to rent an apartment after you file bankruptcy. Essential considerations are prior rental history and having the disposable income to pay the rent payments are they come due.
Securing a new rental agreement for an apartment or house after a bankruptcy filing
You will most likely be able to rent during and after your bankruptcy. However, you may be required to pay a larger security deposit or submit more information, such as a credit report or bank statements, to get lease approval. Landlords need to weigh their risk and seek to minimize the chance of renting to someone who would break their lease.
Filing bankruptcy can be a good thing in that it increases your disposable income. In addition, now that the financial crisis that caused your bankruptcy is over, you should be in a better financial position.
You can more easily make your debt payments after you receive a bankruptcy discharge. This would also make rent payments easier to make.
There are many factors a potential landlord will look at when evaluating a possible tenant after a bankruptcy filing before entering into a rental agreement. These can include:
Credit History after filing bankruptcy
Even if you hadn’t filed for bankruptcy, a potential landlord might check your credit score. The landlord will search your credit history for problems, including evictions litigations or judgments, repossessions, and late payments or defaults on other debts, such as credit cards.
It’s unlikely that your application will be accepted if it appears that you’re still having difficulties meeting your financial obligations. However, rebuilding your credit score after a recent bankruptcy can make renting a new apartment a lot easier.
A good credit check can go a long way to renting a new house or apartment. Unfortunately, many landlords only perform credit checks and talk to previous landlords.
Employment history post-filing
Another factor the landlord will likely consider is employment history. After you file bankruptcy, a potential landlord will see that you maintained sufficient income to make your rental payments on time.
Use Your Prior Renting History to Your Advantage
If you’ve previously rented and can provide documentation that demonstrates a history of an excellent rental history with timely payments, emphasize this during your application or an interview with a prospective landlord. Even if you have bankruptcy or bad credit, it could help persuade them to give you a chance because of this.
Consider renting from a private property owner
If you are trying to lease from a large chain, you may find your hands are tied to corporate policies. You might have better luck dealing with private properties management companies. Many will rent for you without checking your credit. Even if they run credit searches, they are still capable of more flexible options concerning applying.
I’d have a realtor. Realtors will not only sell homes but will also find people for rent and will find people who can rent to rent.
In Conclusion: You Can Stay in Your Apartment After You File Bankruptcy!
You may even be able to rent another house or apartment in the Future if your bankruptcy is discharged. Talk with a knowledgeable attorney about how filing for Chapter 7 bankruptcy will affect your rental situation and ask any questions that arise.
If you have been considering bankruptcy as an option but are unsure of what it means for your home life, talk to a bankruptcy lawyer for the answers you need.
Contact a Michigan Bankruptcy Attorney Today to Discuss Bankruptcy and Apartment Rental Issues!
Call us immediately if you have questions regarding this subject or are having trouble paying your bills. Bruce Law Firm has lawyers that can assist you with debt relief. Good bankruptcy attorneys evaluate your situation and provide legal advice to see if filing bankruptcy can help. Call today for a free consultation.
Bruce Law Firm is a debt relief agency. We help provide debt relief for those seeking protection under the US Bankruptcy Code.