A common concern that many Ohio residents may have is whether or not they can rent an apartment in Ohio after filing for bankruptcy. Most people will need to rent at some point post-bankruptcy, but you may worry about what your options will be when you have bankruptcy on your credit report.
Are you worried about how bankruptcy will look if you want to rent an apartment in Ohio? If so, check out this article, where we will discuss how bankruptcy will impact your ability to start a new lease.
How Landlords Evaluate Rental Applicants
Firstly, you need to understand that it is a common practice for landlords to run background and credit checks. Because of this, landlords will see if you have filed for bankruptcy in the past.
However, just because you have bankruptcy on your credit report, that doesn’t immediately disqualify you from renting an apartment in Ohio. In fact, even though this may seem like a negative thing, most landlords will prioritize other aspects of your background.
Here are some examples of other factors landlords will consider besides past bankruptcy filings:
- Past evictions: Landlords specifically look for any past evictions, especially recent ones.
- Stable income: One of the most important factors landlords prioritize is whether you have a stable income. Stable employment usually has a much bigger impact on your ability to rent than having filed for bankruptcy in the past.
- Debt to prior landlords: Apartment landlords may also try to determine if you owe money to prior landlords.
How Bankruptcy Appears on Your Credit Report
After you have filed for bankruptcy, you will notice an immediate drop in your credit score, with the average drop being 150 to 200 points. The purpose of this is to show lenders that you have been unable to repay debts in the past, making you a risky borrower.
It’s also important to understand that bankruptcy becomes part of your public financial record, so it becomes accessible to other parties, depending on the situation. Your bankruptcy filing will also remain on your credit report for 10 years if you file for Chapter 7 and seven years if you file for Chapter 13.
After the seven or 10 years are up, your bankruptcy filing drops off your credit report, and you will have a fresh start.
Can You Get an Apartment After Filing For Bankruptcy in Ohio?
The good news for individuals who want to rent an apartment in Ohio after bankruptcy is that this is entirely possible. As we discussed above, landlords will see past bankruptcy filings, but this isn’t necessarily a dealbreaker.
Landlords may actually prefer tenants who have already filed for bankruptcy, as this means that you have already taken care of any substantial debts. For most landlords, this is much better than taking on a tenant who is likely to file for bankruptcy in the future, as this makes them a liability.
Tips For Applying for a Rental After Bankruptcy
Even though it’s still possible to rent an apartment after bankruptcy, landlords may still feel hesitant. Because of this, you should take certain steps to show that you can maintain your monthly rental obligations and won’t become a liability.
- Income verification: To clearly establish that you have stable employment and dependable income, you need to provide extensive documentation. This can include things like employment contracts, W-2s, bank statements, pay stubs, etc.
- Rental history: Even though landlords can view some of your rental history when they do a background and credit report check, you should still provide additional information. You want to showcase that you maintained your past rental agreements, paid rent on time, and didn’t break any previous leases. If you have them, you should also prioritize providing strong rental references.
- Honest communication: Offering an explanation can go a long way if you want to rent an apartment with bankruptcy on your record. For instance, you may have filed for bankruptcy due to circumstances outside of your control, such as an illness or unexpected job loss.
- Offer a security deposit: Landlords usually require a security deposit when you begin a new lease. And if you’re dealing with a hesitant landlord because of your past bankruptcy filing, you may want to offer a larger security deposit as a way of proving that you have the necessary financial means.
- Expand your search: Larger corporate complexes may not want to lease to a renter whom they consider to be high-risk. So, you may have more luck applying with smaller and more local landlords who are willing to take a chance on a wider pool of renters.
You should also consider consulting with an Ohio bankruptcy attorney, whether you’re in the process of filing for bankruptcy or simply considering it. An attorney can help you navigate the entire bankruptcy process from the beginning stages to what comes after you have filed.
FAQ Section
Can a landlord deny my application because of bankruptcy?
It depends. Although there are some legal protections available for renters, private landlords and property management companies may still deny applicants due to past bankruptcy filings.
How long will bankruptcy appear on my credit report?
10 years if you file for Chapter 7 and seven years if you file for Chapter 13.
Will Chapter 13 look better than Chapter 7?
Landlords generally review both types of bankruptcy in the same light. However, some landlords may prefer Chapter 13 as it helps to clearly establish your ability to maintain your ongoing financial responsibilities.
Can I rent immediately after filing for bankruptcy?
You can, but it’s best to wait until your debt has been discharged before moving forward with rental applications.
Hire a Bankruptcy Attorney in Ohio
Even if you have to file for bankruptcy, it’s still possible to rent after bankruptcy as long as you take the necessary steps to establish a good financial track record afterward. Richard P. Arthur, Attorney at Law, has extensive experience handling bankruptcy cases in Ohio and can help you navigate the bankruptcy process and how this will impact your future renting opportunities. To proceed with your case, contact us today at 937-254-3738 for a free consultation.