Many people who are considering filing for bankruptcy worry that they will not be able to rent an apartment if they file for bankruptcy. This is a common misconception about the effects of filing for bankruptcy. It is true that many apartment complexes will run your credit report when you apply for an apartment. However, having a bankruptcy on your credit report does not disqualify you from getting an apartment.
Your credit score may take a hit immediately after filing for bankruptcy. However, most bankruptcy filiers are able to get their credit score back in the 700s within a year or so after filing for bankruptcy. It is also important to know that apartment complexes are not only looking at your credit score. They also look at your proof of income, your rental history and the references you provide as well.
There are things you can do to improve your chances of getting an apartment:
-Communicate about your bankruptcy. Inform the apartment complex that you had some hardships that were resolved through the bankruptcy.
-Provide proof of income and make sure the apartment is affordable. The general rule is that your rent amount should be 30-40% of your monthly income.
-Make a larger security deposit.
-Have a co-signer on the lease who has a better credit score.
-Get a short-term rental (3-6 months) where you pay the first and last months rent upfront.
-Go to a smaller or privately owned apartment complex. These places are usually more flexible and many don't even run your credit report.