Bankruptcy is a challenging time for anyone especially if it includes a foreclosure. For people who can't afford to keep their home, they are often confused by a common bankruptcy myth about renting after bankruptcy. People are often afraid that nobody will be willing to rent to them and their credit will be ruined.
The truth is that there are rental options for people who have filed bankruptcy. Whether you are filing for bankruptcy in Murfreesboro, Clarksville or Nashville, there are people who will be willing to rent to you. That isn't to say that everyone will be willing to accept you as a tenant, but knowing a few tips will help you find the many places that will.
Update your Credit Report
Apartments that are owned by a corporation typically have strict guidelines prohibiting their landlords from renting to anyone with two bad credit accounts. However, there is a difference between "bad" debt and discharged debt. Bad debt comes from late payments. However, if you received a Chapter 7 discharge, the debt is wiped away and is no longer considered bad debt.
If you bring an updated credit report with you after you have filed for bankruptcy, the discharge will appear to your creditors instead of "past due". Knowing you have addressed your debt issues in bankruptcy and are on your way to getting a fresh start will go a long ways towards getting a new place to live.
Find a Private Landlord
Bankruptcy experts will tell you one of the easiest ways to find a place to live is through a private landlord. This can be done by looking for places in the local classifieds or talking to a friend about their landlord. Taking this approach will allow you to speak directly with the owner instead of working with a corporation, because an individual will more likely work with different financial situations.
Be Honest
It is also important to be prepared and honest when meeting with a landlord. The leasing agent will likely run a credit check. If you are upfront and honest about your bankruptcy, a landlord will be more willing to work with you, because you are not trying to hide something from him or her.
Make a Good Impression
Finally, one of the ways you can get a new place is simply by creating a good impression. Even something as simple as wearing clean clothes and being well groomed when you meet your prospective landlord can reinforce to him or her that renting to you will not be a poor business decision.
Prospective landlords may ask you to put down a greater deposit before agreeing to rent to you. Anticipating this in advance will help you be prepared so you don't miss an opportunity.
If you are facing foreclosure and needing relief from your debt problems, you should speak with a Nashville and Middle Tennessee debt solutions attorney who can review your options with you.
