When you file for bankruptcy, it can have a considerable impact on many areas of your life, including your finances. As such, being approved for an apartment may be more challenging than you initially realize, especially in the years following your filing. Because many landlords and property management companies review credit scores to examine financial stability, a bankruptcy case may impact your approval. However, bankruptcy does not automatically prevent you from renting. Follow along to find out whether bankruptcy can affect your ability to rent an apartment and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can work to improve your chances.
Can Bankruptcy Affect My Eligibility to Rent an Apartment in Rockland County?
Put simply, your filing for bankruptcy may be a major consideration that a landlord takes upon reviewing your apartment application. Of note, they may take your bankruptcy all the more seriously if you filed within the past two years.
What’s more, your credit history is a major contributing factor to a landlord’s decision. So, as you may already know, your bankruptcy filing may cause your credit score to take a serious hit. This is not to mention that your Chapter 7 bankruptcy will remain on your credit report for 10 years, while a Chapter 13 bankruptcy will remain for seven years.
Why Landlords Check Bankruptcy Records
- Landlords can review:
- Credit reports
- Employment verification
- Housing history, including past evictions
- Debt-to-income ration
- Bankruptcy is often a red flag indicative of financial instability or inability to make payments
- Recent bankruptcy filings are often scrutinized more than older filings
- Large complexes or property management companies may utilize automated systems that automatically flag or deny applications with bankruptcy filings
- Individual landlords may be more flexible and understanding than large companies
Do Chapter 7 and Chapter 13 Impact Renting Differently?
- Chapter 7 filings remain on credit reports for 10 years
- Chapter 13 filings remain for 7 years
- Some landlords view Chapter 13 more favorably than Chapter 7 because it involves repayment
- Approval will vary on a number of factors, including your income, current debt, rental history, and the time since the case was closed
What Other Factors Might a Landlord Consider With My Apartment Application?
It is worth emphasizing that your history with bankruptcy may not automatically disqualify you from renting an apartment; it may just make it that much more difficult to be approved. This means that there are other aspects of your apartment application that you may capitalize on to improve your chances.
Financial Factors That Can Improve Your Chances
- You may prove to the landlord that you exceed the income requirements for the apartment rental
- You may prove to the landlord that you have a significant amount of disposable income since your bankruptcy proceedings discharged some of your debts
- You may prove to the landlord that you have a history of maintaining stable, permanent employment
- You may prove to the landlord that you have been at your current job for an extensive period, even throughout your bankruptcy proceedings
- You may prove to the landlord that you have never been late on your monthly payments for past apartment rentals
- You may prove to the landlord that you have never been evicted from past apartment rentals
- You may prove to the landlord that your bankruptcy proceedings have concluded, and it is not an indication of your present financial status
Additional Steps You Can Take to Improve Your Chances
- Provide proof of alternative income sources
- Consider a co-signer
- Offer a large security deposit, if legally allowed
- Obtain references from past landlords and employers
- Consider writing a brief letter explaining your bankruptcy and the changes you made to regain stability
How Long After Bankruptcy Is It Easier to Rent an Apartment in Rockland County?
Many tenants worry that bankruptcy will permanently impact their credit and subsequent ability to obtain an apartment. However, this is typically not the case, as the more time that passes, the less weight a bankruptcy filing carries.
Typical Timelines Considered by Landlords
- 0-2 years post-bankruptcy
- Most difficult approval period, as the case is still considered recent
- Higher likelihood of denial
- Corporate landlords may utilize strict screening requirements
- 2-4 years post-bankruptcy
- Chances of approval grow, especially if you begin rebuilding your credit
- A positive payment history can carry considerable weight
- 5+ years post-bankruptcy
- Many landlords shift the focus to recent financial behavior
- Bankruptcy carries less weight during the application and screening process
In competitive rental markets, including those throughout Rockland County communities like Suffern, Nyack, Nanuet, and Spring Valley, landlords often place more weight on stable employment and current income when considering past bankruptcy filings.
How Can I Rebuild My Rental Eligibility?
- Consider a credit builder loan
- Make on-time payments
- Set and adhere to a budget
- Monitor and correct credit reports
- Maintain steady employment
Can Rockland County Landlords Legally Deny Applications Based on Bankruptcy?
Landlords and property managers are generally provided considerable discretion when screening potential applicants. However, they must still comply with local, state, and federal housing laws.
Federal Bankruptcy Protections
- Certain federal laws impact how governmental housing authorities consider bankruptcy filings in certain circumstances
- Private landlords, however, have broad discretion to evaluate financial risk
- Fair housing laws protect against discrimination based on certain characteristics, like:
- Race
- Religion
- National origin
- Disability
- Family status
Contact an Experienced Rockland County Bankruptcy Attorney Today
If you are considering filing for bankruptcy in Nanuet, Nyack, Suffern, or any other Rockland County community, it’s in your best interest to consult with a talented Rockland County bankruptcy attorney immediately. Our team at The Law Offices of Allen A. Kolber, Esq. is happy to advise you. If you need assistance, do not hesitate to contact our team today to learn more about your legal options.
