Tuesday, September 8, 2009

Will a landlord rent to me after bankruptcy?

There are two types of landlords. Those with brains and those with systems. Either can be successful.

Those with a system will probably say "No" as soon as you walk in the door. Just keep walking, this is what you signed up for when you chose bankruptcy.

Those with a brain will probably understand that you are a better risk the day after you file bankruptcy than you were before. After filing, you no longer have creditors threatening, judgments pending and garnishments possible.
Credit collectors have and a whole range of psychological tricks designed for you to spend your rent check to resolve your old credit card bill. There are very, very few instances where that would be a smart idea. But people get threatened into it all the time.

Now, sometimes those landlords with brains are smart.I've worked with some before. They'll review your case filing. They'll make sure you're not still broke because of some car you still can't afford. They'll compare their rent to your old rent.

I worked with a good friend who rented their home out to someone in a bankruptcy and hopes to close of the lease/purchase side of the contract.Digging deep in that paperwork showed that the bankruptcy was set up as a Ch13 in order to stop foreclosure on a home they were really stretching to afford.The problem that lead to the bankruptcy was solved, they let go of the home. They've been solid renters.

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