How to get an apartment lease/rental after BK 7?

[hmsmith]

I would ask a family member to co-sign as well....of course this isn't ideal, but hey when you need to get established again and have no other options, I'd at least try that route.

[justbroke]

Look, I lost my job and was forced into bankruptcy because of my divorce. You're saying you would NEVER rent to someone who has been though this BK process and had their debts (broken lease included) lawfully discharged? Seriously? What am I supposed to do, go back and cough up the $3,000+ I "owe" them now? lol

You misread and I must have misread what you wrote. If you "rejected" a lease as part of a bankruptcy, then that would not be held against you and you wouldn't owe any damages or liquidated rent. In other words, you would have relinquished the apartment/home as part of the bankruptcy process. As a prior bankrupt, I wouldn't hold that against you at all, and would rent on your strong job history and lack of criminal record.

However, you didn't mention that you rejected the lease in a bankruptcy. Otherwise, there is no way you would owe them any money. As such, this would tell me that this was after the bankruptcy and is an indicator of your payment history post-bankruptcy. Yes, it's harsh, but it's a reality of getting a clean start and then -- even if through no fault of your own -- tarnishing that clean start.

Here's a new question - is it worth trying to get these entries removed via a DV process with the credit brueaus and/or the management company? If they fail to respond, I could ask the bureaus to remove the entries...it works with credit cards, why not other unsecured "negatives"?

The process is that you send a dispute and then the bureau "investigates". When it comes to debt that was discharged in bankruptcy, many creditors will just remove the entry or zero it out and list as "paid" (with no payment history), should the debtor dispute. I personally believe that if you can get something negative removed from your credit report(s), then that is a good thing.

The question for me is, did this lease default occur after you filed bankruptcy? If so, that makes it very difficult. Again, I use TVS (Tenant Verification Services) and it will never give me an "okay" to rent to someone with any eviction or past rental problems. I have had serious tenant issues which may have been prevented by better screening. This is why I am strict. If TVS says "no", then I say "no".

Should you pay back the $3,000? If you can't or have not discharged it in a bankruptcy, then you'll just have to run the risk of it being on your credit. Additionally, they may still try to collect through various means including assigning it to collections, obtaining a judgment, and seeking to garnish wages.

So I hope you tell me that you rejected this lease as part of the bankruptcy. If not, then this is a serious issue.

[tazunemono]

You misread and I must have misread what you wrote. If you "rejected" a lease as part of a bankruptcy, then that would not be held against you and you wouldn't owe any damages or liquidated rent. In other words, you would have relinquished the apartment/home as part of the bankruptcy process. As a prior bankrupt, I wouldn't hold that against you at all, and would rent on your strong job history and lack of criminal record.

However, you didn't mention that you rejected the lease in a bankruptcy. Otherwise, there is no way you would owe them any money. As such, this would tell me that this was after the bankruptcy and is an indicator of your payment history post-bankruptcy.

This all happened (apartment lease, collections) BEFORE my bankruptcy was filed. My kids and I currently live with my folks. About a year ago, I had a place for 6 months, then I lost my job, and rather than face eviction, I just turned in the keys and left. I told them I lost my job and thought this was more responsible as I could not afford to pay and had the luxury of falling back on my folks. Hey, at lease they can re-rent the place vs. trying to evict me! A few months ago, while I was gearing up for a BK 7, the management agency sent me to collections so I have the neg on my report.

Since I recently filed pro se, I can assure you the management agency AND the collections firm are both listed in my schedules as an unsecured creditor and also in the section on unexpired leases. Once I am discharged, the debts should be gone, but - will the "black mark" remain?

That was the essence of my question - if a prospective lessee sees "Baily Co Property Management - discharged in BK" will they automatically deny me? What about if they see I have a bankruptcy?

If anything, now I should be a BETTER risk, because I have more money, and I cannot file BK for another 7-8 years. I have a great job with a major employer, and make a great salary. I unfortunatley have zero rental history other than the 6 months. Always paid on time! lol

Thanks for the info on the debt validation/investigation process! Appreciate it.

[justbroke]

This all happened (apartment lease, collections) BEFORE my bankruptcy was filed. My kids and I currently live with my folks. About a year ago, I had a place for 6 months, then I lost my job, and rather than face eviction, I just turned in the keys and left. I told them I lost my job and thought this was more responsible as I could not afford to pay and had the luxury of falling back on my folks. Hey, at lease they can re-rent the place vs. trying to evict me! A few months ago, while I was gearing up for a BK 7, the management agency sent me to collections so I have the neg on my report.

Okay, so this was actually discharged in the bankruptcy. You are not obligated to pay back the money.

If they are in fact trying to collect, you need to do one of the following two things; a.) re-open your case pro se and file a Motion to Re-Open for Limited Purposes of Enforcing the Discharge Order and for Sanctions, or b.) see if you can hire an attorney to do this on retainer (they'll get their fees back from the creditor).

The black mark will remain, unfortunately.

That was the essence of my question - if a prospective lessee sees "Baily Co Property Management - discharged in BK" will they automatically deny me? What about if they see I have a bankruptcy?

Not for that. There are other systems that actually monitor your payment history, leases and the outcome of the leases. Lexis-Nexis is the primary system which monitors this information. When I get a TVS screening report, it tells me your credit score, and then any evictions, then any lease breaches without payment, then any convictions.

Rental history is very important to any prospective landlord. I will tell you this... if you apply in the future through a leasing company or ANY company, just explain it as you are submitting the application (or before)! Let them know the circumstances... "I went through a divorce after losing my job and subsequently broke my lease... however, I have maintained perfect rental history over the last 6 months and post bankruptcy". Also know that many management companies won't lease for at least 12 months following a bankruptcy. if you are upfront, you can get a place.

Now that you explained it to me, I don't need to jump to (an unsupported) conclusion that I would not rent to you. Given your circumstances, combined with the legal maximum deposit allowed, and on your good reference from the current landlord and your stable job... I could override the TVS report and rent to you.

You may be able to dispute the black mark on the credit report, and it "might" go away. You just never know. As for the other systems which keep the "real" rental history, I can't say for certain. Being upfront and honest when applying is the best.

[SMinGA2]

I hold to what I said originally that having the negative rental history will make it hard for you to rent from a management company. You'll need a good rental history reference since then. Living with family won't count. Try to find an individual to rent from. Explain the situation prior to submitting an application: why waste an application fee if they say there is no way possible. Expect to pay a higher deposit.

There are many situations of people needing to move, unable to sell their home. So renting them out is a way to go. If you find one of those situations, where a person can hear your story and evaluate you as a person based on your current financial situation, you'll do better. Once you have that positive rental history built up for 1-2 years, you can probably rent from a management company again.

[TheBajan]

Your best bet really is to find an individual owner rather than a management company. I have had several prospective tenants interested in renting my property who told me up front that they were either in BK or about to file. I have no problem with that if they are willing to be honest and upfront with me and if they are willing to show me verifiable and secure income. By that I don't mean welfare but an actual job that indicates some personal responsibility. From my perspective, if someone is willing to be honest, and they are willing to let me see their credit and rental history, that's where I base my decision. As an individual, I can think through their specific circumstance and determine how much risk I am willing to take. I have learned NOT to base my decision on their word alone. As much as I care about people and want to help, I can't afford to be taken advantage of and that happens when people see that you are a compassionate person. In the end, although they said they were willing to let me see their credit histories, none of the (3) prospective tenants I mentioned actually followed through and therefore I did not rent to them. I do set firm expectations but I do that with any prospective tenant. I figure that it's a pretty simple deal... on my side, if you call, I'll be there. I'm always on top of any problems that may arise with the house. On my tenants side... all you have to do is pay your rent... ON TIME! If I can take care of your needs on time, you can pay rent on time. It's that simple. I don't budge on it. I can't afford to.

[tazunemono]

Update: No luck so far, unfortunately. Denied. No thanks. As if the BK isn't bad enough, I have those two rental blemishes. How hard is it to get a 2-br apartment these days? I make nearly $80k a year and everyone I call and tell "I have filed BK recently" basically rejects me outright. I admit, I'm frustrated At this rate I'll be able to buy a house before I can rent one in this town.

I am thinking of asking my 70 year old Mom to co-sign with me...I can't believe at age 35 I have to have my Mom cosign, crap!

[ksgirl38]

Update: No luck so far, unfortunately. Denied. No thanks. As if the BK isn't bad enough, I have those two rental blemishes. How hard is it to get a 2-br apartment these days? I make nearly $80k a year and everyone I call and tell "I have filed BK recently" basically rejects me outright. I admit, I'm frustrated At this rate I'll be able to buy a house before I can rent one in this town.

I am thinking of asking my 70 year old Mom to co-sign with me...I can't believe at age 35 I have to have my Mom cosign, crap!

Have you tried explaining your situation and offering to pay a larger deposit? I'm sorry, that's the only other thing I can think of. I feel your frustration. Hope you find something.

[sandra123]

Even if you file Chapter 7 bankruptcy, he will have a ding it your credit on top of the broken lease. I would talk to someone at the rental company or find a place to rent from an individual owner where you can explain your situation. Many Americans have been facing similar problems over the last couple years, so you are not alone. Many areas are having trouble keeping their property rented and are lowering their standards. I would check around and I'm sure you'll find somebody willing to work with you. Good luck

[tazunemono]

How about this letter:

Dear [Rental Agent],

Thank you for showing your property. I would love the opportunity to rent from you as I believe this home would be a perfect fit for me and my two children.

The purpose of this letter is to explain my financial situation. Over the past couple of years I have come upon tough times. You will notice that my credit is certainly less than perfect, but I am working very hard to correct that. My primary source of economic strain has been a divorce and subsequent bankruptcy as a result of the tough economy. On top of that, I lost my job and had to break my lease in order to move back in with my parents to survive. Prior to my 'speedbumps' I always had a great credit rating (previous homeowner) and the position I've been thrown into is not a comfortable one.

At present I have been employed with <Large Company> since October 2011, earning $75,000/yr. as a project manager with a Master's degree from <University>. I have downsized, cutting many expenses, and am positive I have the ability to afford the rent for this property. I am sure you will regard me and my kids as “perfect tenants” if you find us qualified. I kindly ask that you please overlook recent blemishes to my credit, as these are not true indicators of my overall creditworthiness.

To support my claim, I have supplied my last 6 months of pay stubs as proof of income and would be happy to work with you to get to your own "comfort level". (E.g., If you would like more references I can accommodate that; we can negotiate increasing the security deposit or pay a larger amount as “down payment” in advance, etc.).

I am a very responsible person, but one facing a challenging set of circumstances. I believe it is not failure that defines a person, but rather the way in which one deals with tough situations that defines them. Please note that bankruptcy is a Federally-granted "fresh start" for individuals in tough situations (like me); I cannot declare bankruptcy again for another 8 years, as per Federal law. As a matter of fact, my credit scores are beginning to rise, and I am committed to owning my own home as soon as my credit and time allows.

Thank you for your consideration.

[Name]

[TheBajan]

How about this letter:

Dear [Rental Agent],

Thank you for showing your property. I would love the opportunity to rent from you as I believe this home would be a perfect fit for me and my two children.

The purpose of this letter is to explain my financial situation. Over the past couple of years I have come upon tough times. You will notice that my credit is certainly less than perfect, but I am working very hard to correct that. My primary source of economic strain has been a divorce and subsequent bankruptcy as a result of the tough economy. On top of that, I lost my job and had to break my lease in order to move back in with my parents to survive. Prior to my 'speedbumps' I always had a great credit rating (previous homeowner) and the position I've been thrown into is not a comfortable one.

At present I have been employed with <Large Company> since October 2011, earning $75,000/yr. as a project manager with a Master's degree from <University>. I have downsized, cutting many expenses, and am positive I have the ability to afford the rent for this property. I am sure you will regard me and my kids as “perfect tenants” if you find us qualified. I kindly ask that you please overlook recent blemishes to my credit, as these are not true indicators of my overall creditworthiness.

To support my claim, I have supplied my last 6 months of pay stubs as proof of income and would be happy to work with you to get to your own "comfort level". (E.g., If you would like more references I can accommodate that; we can negotiate increasing the security deposit or pay a larger amount as “down payment” in advance, etc.).

I am a very responsible person, but one facing a challenging set of circumstances. I believe it is not failure that defines a person, but rather the way in which one deals with tough situations that defines them. Please note that bankruptcy is a Federally-granted "fresh start" for individuals in tough situations (like me); I cannot declare bankruptcy again for another 8 years, as per Federal law. As a matter of fact, my credit scores are beginning to rise, and I am committed to owning my own home as soon as my credit and time allows.

Thank you for your consideration.

[Name]

Very impressive letter. As a landlord, I would appreciate and respect it. The only issue I see with your proposition is that while it varies from state to state, we [landlords] are only allowed to collect a limited amount of deposit so even if you are willing to pay more, the law restricts us from collecting more. In some states it's one month of rent and in some states it's one and a half months of rent. I don't believe I've heard of any states allowed to collect more than that. If you find a landlord willing to take more than that, you probably should not rent from him/her.
Best wishes,
The Bajan

[justbroke]

I agree with Bajan. As I posted earlier, I'm precluded from charging "extra" security. I'm also leery of taking "advanced" rent as well. In all practicality, those that pay advanced rent are much more likely to not make another rent payment throughout the lease period.

I do like the letter. My decision will still be based on what I posted earlier.

[SMinGA2]

Forget the rental agent. If you're dealing with a corporate entity - you're going to have problems. Why? Because they must have an established list of requirements for rental. If you don't meet those requirements, they won't rent to you. If they start making exceptions then they face the possibility of a discrimination suit. And discrimination is a BIG thing in property rental.

Go private, where you're dealing one on one with the person who makes the decision.

[AngelinaCat]

On a broader level, has anyone faced any kind of discrimination due to the BK lited on their credit report?

Thanks

Yes. When you do find a rental, and wish to purchase renter's insurance, be prepared to have trouble due to the bankruptcy. Some companies will not take people with a BK on their records at all. Others will insist on a five year gap between the date of discharge and the date of your application. Since you have several years, you will be okay there. Other companies will want to know the reason for the BK--medical, legal, or other.

When you are ready to shop for insurance, go to an independent insurance agent, and go in person so that you can answer questions. The agent will shop through the various companies that he/she represents and find you a 'best fit' for your situation. I say to go in person, because each insurance company's underwriters have a different set of questions that they ask. This is not something that is easily handled by telephone or online.

Good luck!

[tazunemono]

Yes. When you do find a rental, and wish to purchase renter's insurance, be prepared to have trouble due to the bankruptcy. Some companies will not take people with a BK on their records at all.

I have State Farm for my auto and life...so you're saying they won't give me renter's insurance?!?!