Renting Property During and After Bankruptcy: What You Need to Know

Introduction

Many people considering bankruptcy worry: “Will I still be able to rent a place to live?” Whether you’re in the middle of bankruptcy or rebuilding afterward, renting property is still possible. The key is understanding how landlords view bankruptcy and what steps you can take to improve your chances.

This post breaks down how bankruptcy affects renting both during your case and after discharge.

Renting Property During Bankruptcy

1) If You Already Rent

• Filing bankruptcy does not automatically terminate your lease.

• In Chapter 7, you can assume (keep) or reject (end) your lease.

• In Chapter 13, you can keep paying rent under your plan.

• Landlords cannot evict you for filing bankruptcy alone, but if you’re behind on rent, they can ask the court to lift the automatic stay and proceed with eviction.

2) If You’re Applying for a New Lease While in Bankruptcy

• Landlords often run credit checks. A pending bankruptcy will appear.

• Some landlords may hesitate, but many are more concerned about current income and ability to pay rentthan your bankruptcy status.

• Offering a larger security deposit or showing steady income can help.

Renting Property After Bankruptcy

• Once your bankruptcy is discharged, your old debts are wiped away, which can actually make you a lower credit risk in some landlords’ eyes.

• Larger apartment complexes may have strict credit policies, but private landlords often focus more on income and rental history.

• With consistent on-time payments, you can rebuild credit and improve your rental options within 1–2 years.

Tips to Improve Your Rental Chances

1. Be upfront and honest. Many landlords appreciate honesty if you explain your bankruptcy was due to job loss, medical issues, or divorce.

2. Show proof of income. Recent pay stubs, tax returns, or a letter from your employer can demonstrate stability.

3. Provide references. Past landlords or employers can vouch for your reliability.

4. Offer extra security. A higher deposit or co-signer may make a landlord more comfortable.

5. Target the right landlords. Smaller landlords often have more flexibility than corporate property managers.

Example

A single mother in Maryland filed Chapter 7 after overwhelming medical debt. During her bankruptcy, she applied for a new apartment. The landlord initially hesitated because of her credit, but she provided proof of full-time employment, offered an extra month’s rent upfront, and was approved.

Conclusion

Bankruptcy may temporarily limit some rental options, but it does not prevent you from renting property. With preparation, honesty, and a proactive approach, you can secure housing both during and after your bankruptcy case.

💡 Next Step: If you’re considering bankruptcy but worried about housing, talk with Middleton Bankruptcy to create a strategy that keeps your housing stable while you get financial relief.