Renting a Property After Processing Chapter 7 Personal Bankruptcy in Arizona
We recently had a customer come into our Glendale bankruptcy office to submit a Chapter 7 bankruptcy. Our client currently lives in a leased condominium but wants to move into a more cost-effective place to live.
Our customer’s lease on his condominium extends through the end of the year and he needs to declare bankruptcy before then. The concern that the customer has is that he might not be able to receive a new lease on a place just after filing for bankruptcy.
Would the Chapter 7 individual bankruptcy that he’s submitting make finding a new lease extremely hard?
A good point to always consider is that the months right after a personal bankruptcy filing is a time when an individuals credit standing is the most affected. Credit scores are often at their lowest right after a Chapter 7 or Chapter 13 personal bankruptcy recording. Our Glendale AZ chapter 7 lawyer informed our client that it’s very possible that he would have a difficult time getting a landlord who will rent him an apartment soon after proclaiming bankruptcy.
A better selection for our client, rather than declaring bankruptcy and then seeking to secure a new place to stay, would be for our client to sign a new lease on a different property prior to filing bankruptcy and then reject his current rental in the Chapter 7 personal bankruptcy filing.
Our bankruptcy client took the recommendations of our Glendale bankruptcy law firm and he has already signed a new rental on a more cost-effective apartment to live. Our client will be rejecting his present lease contract in his Chapter 7 personal bankruptcy filing. Chapter 7 bankruptcy processing will in addition wipe away all future rent owed and penalties accrued for not fulfilling the lease’s terms.