Tips on Renting While in Chapter 13 Bankruptcy

It can be a frustrating time during and after a Chapter 13 bankruptcy. It can affect your credit in a big way. It will be hard to rent a home or apartment afterwards. People will turn you down or charge you very high deposits to secure and apartment or home. There are things you can do to make sure you are successful.

• Contact your trustee to let them know that you would like to move. You must do this before you actually start looking for a place. The trustee oversees your payment plan and can determine how much you will be able to pay out for rent. They know best how much you have left over after the creditors are paid each month. In order for the plan to work, you must let the trustee know about any financial decision you make.

• Do not apply to large management companies because it will be more difficult. They have stricter guidelines when it comes to finances, which make it harder for you to qualify. Some will rent while you are in the process of a Chapter 13 but not many. Most will want the bankruptcy to be discharged before allowing you to rent from them. Go with smaller apartment complexes that are privately owned because you will have a better chance.

• Ask friends, family or coworkers who have their own properties if they will rent to you. Also ask them if they know of other people who might rent to you while in Chapter 13. People who know you personally or people who have received a recommendation about you will like rent to you.

• Be open and honest about your bankruptcy. If you fill out an application and they find out that it is not discharged, the rental place may find you dishonest and have many questions about you. Some of the property owners may not know much about the process of bankruptcy and will want to know how you will pay during the process. Honestly explain to them that you are paying all of your debt back through a court managed plan and that they oversee your debts. This may ease their mind and rent to you.