Renting An Apartment Post-Bankruptcy in Ohio

Whether you file for chapter 13 bankruptcy or are looking for a chapter 7 bankruptcy lawyer to help guide you through the process, it’s an inevitable reality that your credit history will take a hit following a bankruptcy in Ohio or anywhere else. That said, our credit repair courses can help to get you back on track in a year or so. But what if you need to relocate, and so rent a new place, in the meantime? 

You clearly cannot hide the fact that you have been through bankruptcy, as it will appear on your credit report for 7 to 10 years. Though as time goes on, it will likely hold less importance in a landlord’s mind. But there are some key techniques that you can employ to make the process smoother for yourself and your potential landlord if you need to relocate right away. Here we’ll discuss some actionable and practical tips to help you find a place to live, even after filing for bankruptcy in Ohio.

Are You Currently Renting When You File for Bankruptcy?

If you already own a home and can use the state exemption to keep your residence when filing for bankruptcy in Ohio, then this isn’t a relevant topic for you. However, if you are currently renting the home, apartment, condo or other residence when you file for bankruptcy, is there any potentially ill effect to worry about? 

For starters, the key point is whether you are current on your payments. If you are, then even if they find out that you are filing for bankruptcy, your landlord shouldn’t try to evict you. In any event, the automatic stay that goes into effect when you file for bankruptcy will prevent them from doing that for a time. And according to your contract, your ability to live in your home likely is contingent on paying your rent and following other reasonable rules. If you are current on payments, then there shouldn’t be anything to worry about. However, if your financial situation has you behind on rent payments, then you may find yourself in a precarious situation, and the landlord may move to evict you after the automatic stay is lifted and the bankruptcy proceedings are over.

This is the time to work with an experienced Ohio bankruptcy lawyer, because you may determine that, going forward, the rent at your current home will simply be too high to continue to pay faithfully. As someone filing for bankruptcy, you are given the opportunity to reject the contract and leave your rental agreement without penalty and without the prospect of your landlord hunting you down for future months’ payments. If this is your best option, you will then need to find a new place to live, and this can open up different complications.

Can You Get an Apartment After Bankruptcy in Ohio?

It is certainly possible to find an apartment after filing for bankruptcy, but the process can pose some challenges, especially for the first couple of years following your bankruptcy. In particular, the first three months following your initial filing–prior to receiving a discharge or debt repayment plan–are often the most difficult times to find a new place to rent. Your future landlord will know that you’ve had some recent financial difficulties to contend with, and could be skeptical if your case is still pending. Since landlords aren’t government entities, they are fully within their rights to deny renting to someone who recently filed for bankruptcy.

That said, there is an argument that bankruptcy sets you up to be a better tenant, since your debts are cleared or at least under control via a repayment plan, and your income is now more available to guarantee steady rent payments. Also, since there is a wait time of several years before you can file again for bankruptcy in Ohio, any landlord can safely assume that you aren’t going to purposely run up debt.

Either way, working to rebuild credit and following some tried and true recommendations can get you where you need to be. Once your case is completed and you’re on your way to recovery, things will hopefully go more smoothly.

How To Improve Your Chances Of Renting Post-Bankruptcy

First off, we’d always recommend working with your bankruptcy attorney to check your credit and rental history. You want to make sure that what a potential landlord is seeing is accurate and up-to-date. Bankruptcy alone will often present a hurdle to overcome–no need to complicate things further with an untrue representation of your credit or rental history.

When you communicate with a potential landlord, here are some top tips to keep in mind:

• Share documentation: rent payment records can be invaluable to show that, even when you were having real financial trouble, you didn't break previous leases or rental agreements and you consistently made rent payments on time (present canceled checks, receipts, or letters from previous landlords as proof)
• Offer an explanation: if your bankruptcy was due to circumstances beyond your control (e.g. illness, divorce, death, job loss) you may be able to garner some understanding from a potential landlord, especially if you position your situation as a fresh start and show why past conditions aren't likely to repeat
• Highlight financial health: explain that your debts are reduced or eliminated, providing ample proof of stable employment and consistent income (e.g. pay stubs, bank statements, tax returns)–underscore that since your finances have improved, you have the needed funds to pay toward rent
• Provide references: testimonials from third parties can do far more than your own words to convince a landlord that you are trustworthy, especially if that reference is a previous landlord, employer, or colleague
• Offer a larger security deposit: this is a practical way–if you have the available savings–that you can lessen a landlord’s risk and ease their concerns
• Use a co-signer or guarantor: ask a responsible friend or family member who has good credit and steady income if they can cosign your lease and take on the financial responsibility if for some reason you absolutely cannot pay
• Find a private landlord: smaller, private landlords could prove to be more flexible and understanding than a large property management company
• Try no-credit-check apartments: this requires some care and caution, but it is possible to find a landlord that will not run a credit check–you may end up sacrificing location or amenities
• Expand the search: look into less competitive housing markets in the general area where you hope to live, and consider rental facilities near college campuses, since they often rent to students who are lacking a robust credit history
• Ask about a month-to-month lease: this shorter lease at the start can help you to prove trustworthiness and reduce risk for the landlord

If you find that landlords are unwilling to consider you as a potential tenant, there is always the option to co-sign a lease with a roommate, such as a close friend, romantic partner, or family member. They, of course, will need to have good credit in order to secure housing. While not always ideal, living with someone can prove to be a valuable and temporary stepping stone to getting back on your financial feet as you repair your credit and recover from your bankruptcy filing.

In the end, once you’ve employed these tips, patience is also often required. It is possible to find the housing you need, and the chance of having a positive experience with a landlord increases as the bankruptcy fades into the past. In the meantime, keep a persistent but positive outlook and do all you can to keep progressing in your financial health.

Speak with an Experienced Ohio Bankruptcy Lawyer

Even though it’s the start to a new page of financial health, bankruptcy is stressfull–no doubt about it. When you’re also juggling where you’ll live, it can feel overwhelming. At Hausen Law, we understand, and we’re here to help. Here you’ll find an experienced team of chapter 7 bankruptcy lawyers, ready to take on your case and advocate for your best interests. James F. Hausen has handled over 2,000 cases in his efforts to provide legal counsel to all of Northeast Ohio, including the Akron, Canton, Cleveland, Columbus, Dayton, Cincinnati and Youngstown communities. Contact us today to set up a free consultation and learn more about your bankruptcy options. Inquire about our credit counseling and credit repair programs–we’re ready to help you move forward toward a more positive future.