Under Credit After Bankruptcy+ Life After Bankruptcy
As with everything else involving your finances, renting after bankruptcy is going to be very different than it was before.
The first thing that you need to be aware of is that you are most definitely going to have to pay a very large deposit. You will probably be asked to pay enough to cover last months rent plus an additional security deposit amount. You’ll want to know this ahead of time so you can make sure you have that much saved. This money should be refundable at the time you move out. Despite this large deposit, you are still going to have a hard time finding a rental, particularly depending on how recent your bankruptcy was. The more recent your discharges, the harder it will be. That doesn’t mean it’s impossible though (even though that’s sometimes how it will feel).
The problem is that most big companies will have policies that are going to rule you out, and they aren’t going to be willing to consider going around them. They simply aren’t interested in working with you. To get around this, you want to look elsewhere–look for an individual renting out their property who is going to be okay renting after bankruptcy. Be up front with this person from the get go so that you don’t waste your time or theirs. Tell them you have a bankruptcy in your past. If you have a good rental history (clear of evictions) tell them that. If you can, get some letters of reference from past landlords. You probably won’t be accepted at every individual landlord (and they are getting harder to find these days) but eventually someone should look at your situation and be willing to work with you.
To find individual landlords, look both online on websites like craigslist and your online local newspapers classifieds. Also look in print on your local newspapers classifieds, as often these ads are different. A lot of individual owned rentals are run by people who do things the old fashioned way, so print papers are a good resource. You can also drive around your town and look for some “for rent” signs yourself. Another way to find a place is to ask around, ask your friends, post on your social networks–these people may have rented from a great guy before and be able to send a lead your way, and you could then use your friend as a possible reference to get in the door with your prospective landlord.
As with all experiences after bankruptcy, keep in mind that the more you do to improve your credit in the years following the discharge, the easier renting will become for you.
By Jennifer
Under Life After Bankruptcy
Life after bankruptcy is full of questions! A lot of them being with “When”, and almost as many others begin with “Can I?”. No matter how many questions you ask, there’s always more to know about how your life is going to be/is being effected, and things you can do to improve your situation. To begin getting some answers, below are some of the most frequently asked questions and some answers.
How are things going to be different? Your life is going to be affected in practically all areas. This may sound like an exaggeration, but it’s true. You may not have noticed in the past, but many job applications ask if you’ve claimed bankruptcy in recent years, they’re going to ask on any kind of rental application (apartment, car, etc), your insurance rates will go up, and in your personal life, you’ll find yourself constantly explaining how you ended up in your past financial problems. It’s overwhelming, but you do adjust, and it gets easier as time goes on.
When can I start building my credit after bankruptcy? Immediately! A lot of people are so overwhelmed by their situation and all of the work they were doing to discharge their debts that they hide away from anything financial, but the sooner you start facing things and doing the work, the sooner you’ll be able to start moving forward with your life and putting some of this behind you.
When can I get a credit card? You can get a credit card right away, just not the ones you’re used to. Typically, people get unsecured credit cards. This is probably what you’re used to, and possibly the only thing you’ve ever heard of. There are secured credit cards, however, which use a savings account that you agree not to touch as collateral for the card. You will typically be on the secured plan for about twelve to eighteen months, and then graduate to an unsecured option after that. This is a great thing to do in order to build up your credit history, as long as you make sure to make your payments on time each month.
Can I get a cell phone after bankruptcy? Yes, but as with most things now, there are hoops you have to jump through first. You will need to a security deposit in order to open up a new account. The amount varies, and you’re going to find different deals at different companies. Make sure to ask about when they will be paying your deposit back to you. This will come up when you open basically any utility bill, so you’ll want to start saving money up for these occurrences. If you don’t have the cash in this instance for a payment like this, you can always consider a pay as you go phone, which you can get with any type of credit history.
Obviously this isn’t all to know about your life after bankruptcy, but it is a big start in the right direction to get your life moving forward.
By Jennifer