General Questions

[tandv]

My husband and I, after MANY weeks/months of calculating, tears, worry, and problem solving, and meeting with a BK attorney, have made the VERY difficult decision to file. But we do have a few general questions.

1) Currently, we have a pretty good credit score - in the high 600s. We are current on all our credit cards and have completely stopped using them some time ago. We are following the Dave Ramsey/FPU plan and will NEVER have another credit card. That's a non-negotiable. I am wondering how low our credit score will drop? I know it will be trashed but wondering what general range we can expect it to drop to? We do have a van that we will reaffirm on, so we will have that immediate history of continued payments for probably another two years.

2) We have been told that it will be very difficult to get an apartment or rent a home. Also, we have been told that it will be difficult for me to find employment. My husband has a great job in retail management. We live in a VERY rural area so I am a stay-at-home mom. There is a very real possibility that we may move which will put me in a position to re-enter the workforce. Can anyone speak to that?

Thanks!

[TXskyblue]

1. Your credit score will drop if you get lates before you file. If you don't have the lates, it will drop less. My credit score actually went up after my BK was discharged. The idea is that you are not eligible for filing another BK for years, so you are a lesser risk compared to someone who didn't just file bankruptcy.

2. I've heard stories on here and elsewhere of difficulties renting after BK. Some places will shred your application at the first mention of BK. Some places are more flexibile. I think you might have to put up a larger deposit. Regarding employment, I don't think BK is an issue for the vast majority of jobs. If you work in such a field, you'd probably know.

[youngman]

[justbroke]

2. I've heard stories on here and elsewhere of difficulties renting after BK. Some places will shred your application at the first mention of BK. Some places are more flexibile. I think you might have to put up a larger deposit. Regarding employment, I don't think BK is an issue for the vast majority of jobs. If you work in such a field, you'd probably know.

There's no reason to mention a bankruptcy unless it's a question on the application. Most large apartment management companies just run your crdit and rely on a scored response of rent or don't rent.

An eviction is the worst thing that you could have on your LexisNexis report.

I rented two apartments while in a Chapter 13. The one I'm in now, I signed a lease in mid-December 2018... some 9 months before my discharge. These apartments are from nationally managed complexes and I was approved at 3 others as well (where rents went up to $3,800/month... yes... for an apartment). This was despite language in their literature on how to qualify for a lease agreement. (Things like you have to make 3X the rent per month, etc.) Oh, and the two apartments, I paid only a $250 deposit and first month to move in... and received incentives (first month free after second month).

So the credit score and lack of an eviction are what matters most. My scores were mostly above 620 during the last 2 years of my Chapter 13.

(justborke's notes: as a former landlord of multiple apartments and 2 single family homes, I used, and still use, CoreLogic. CoreLogic gives me a "graded" response and a guideline on whether or not to rent with their Applicant Screening tool. Many large management companies use the same system. The link below will show what the report looks like. I'm not advertising for CoreLogic, but want people to see what your leassor sees!)

https://apps.myrental.com/content/pdf/premiumReport.pdf