How hard is it to get a rental house or buy a house after a bankruptcy?

Question

I am planning on filing for bankruptcy as, it is the only way to get out of my current financial situation with out having my wages garneshed. I don't have a problem with having my credit wrecked because, it is already below 500 now, it can't really get much worse.

I am, however, afraid of getting rentals or buying a house with a bankruptcy. I am currently on a 1 year lease at the house I am living it but, the landlord said he would like to sell the house after the lease. I'm really afraid that I won't be able to find any where to move if I have a fresh bankruptcy on my credit.. Anyone have any experiance with this please?

Answer 1

Well not having a problem with having your credit wrecked is what got you into this situation.  ONLY YOU can improve your financial management and your life.  Making excuses, buying things you can't afford (and probably don't Need, but Want), not paying for what you bought and not properly prioritizing got you there.  And bankruptcy isn't really a solution--particularly if you aren't changing.

The reason landlords pull credit is to find out your credit history and whether they want to rent to you.  I don't rent to people with bankruptcies in the last 7 years because it shows poor decision making and poor money management.  Lenders have much tighter underwriting standards than two years ago, and you will have to GREATLY improve your credit after this bankruptcy.

Answer 2

This is the problem with the BK most lenders will not look at you for 12 months after the discharge date. FHA will not look at you for 24 months after it has been discharged. The other problem you may have is re-establishing your credit. You will have to do that in order to get your score up.

Answer 3

I rent to people everyday with a bankruptcy on their credit, but it has to be discharged or paid off.  Even then, if there is no good credit in the past year, I ask a double deposit.  If you're just now filing for bankruptcy I wouldn't rent to you.  Sorry....

Answer 4

Bankruptcies are not the huge disaster they used to be.  The most important thing you have to do is rapidly reestablish credit.  Do this responsibly.  Obtain a secured credit card immediately after your BK is discharged and use it wisely.  Also, you can see about a small loan or a vehicle loan to re-establish.  In order to purchase a home, you will have to justify the BK.  Lenders are understanding if you have a life-changing event causing the BK.  Surprisingly, there are lenders that will offer a home loan 1 day out of BK if your credit score is above 640 (high interest of course).  But, most lenders require 3 yrs. or more.

Answer 5

I filed chapter 7 --and it has been discharged a little over 2 years--I'm having a home built & will close on it next month.  If you HAVE to file make sure you REBOUND after it.  Pay everything on time and start to RE-ESTABLISH as soon as possible after you file!  It's not as bad as some make it sound.

Answer 6

Go ahead and file if you absolutely must....it's not the end of the world. I rent to people everyday who have bk's and foreclosures on their credit.  Life happens and BK can help you reestablish your credit and life!! Don't stress, but start now to repair and get your good name back...also, start now with finding a place to live. There are good people out there who will be understanding of your situation and rent to you anyway....it's like finding a needle in the haystack....the fact is not that it's difficult to find...the fact is IT IS IN THERE - JUST FIND IT!!  Good luck!!

Answer 7

do not file for BK.

I can show you other alternatives.

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BK is 7 yrs of bs.

being late and slow is 3-5 yrs.

one shows you kept at it,

one shows you quit

you have to explain all your life.

I faced BK 30 yrs ago and

am sure glad to chose to stick it out.

I will guide you for free if you like.

I am a visionary of ideas.

I do not sell a plan, I listen to your

needs and concerns.