What You Need To Know About Renting During and After Bankruptcy

Does Filing Bankruptcy Make It Harder To Rent an Apartment or Home?

Many landlords check credit as part of the rental application process, so having a bankruptcy filing on your credit report can make renting more challenging — but it doesn’t make it impossible. 

Several factors influence your likelihood of getting a rental after bankruptcy, including:

• Your current credit score

• Whether you have a recent bankruptcy or whether some time has passed since your discharge

• Your employment and rental history

• Your ability to show you can pay rent moving forward

You can also follow some tips and tricks to improve your odds. For instance, independent property owners are often more flexible than corporate property management companies. So it can be beneficial to apply to rental properties with private owners.

That’s especially true if you can demonstrate a solid rental and employment history and if you’re willing to explain how you’ve improved your finances since filing.

How Bankruptcy Impacts Your Credit Score — and Your Ability To Rent

Filing for bankruptcy can make renting more challenging because it can impact your credit score, but not all bankruptcy filers see their scores drop. 

The impact depends on your financial situation before filing. If you already had a low credit score due to missed payments and high debt, bankruptcy may actually lead to an improvement within a year since it clears past-due balances. 

But if you had a higher score and a clean credit history, you’re more likely to see a drop. Either way, you can start rebuilding your credit after filing, and many people see steady improvement over time.

How Long Does Bankruptcy Stay on Your Credit Report?

A Chapter 7 bankruptcy stays on your credit report for 10 years, while Chapter 13 remains for seven. But that doesn’t mean you’ll struggle to rent for that entire time. 

The impact of bankruptcy on your ability to rent lessens as time passes.Plus, many landlords look beyond credit scores when reviewing applications. Focusing on what you can control — like proving you can pay rent on time — can help you secure housing even after bankruptcy.

Do You Have To Tell a Potential Landlord About Your Bankruptcy?

You don’t always have to tell potential landlords about your bankruptcy, but if they run a credit check, they’ll likely see it. Being upfront about it — especially if you have a strong rental and employment history — can help build trust and show that you’re a responsible tenant. 

If a landlord asks about your credit history, it can help to briefly explain the circumstances that led to your bankruptcy and focus on how you’ve moved forward.

How To Talk to a Landlord About Your Bankruptcy

The key is to frame your bankruptcy as a fresh start rather than a red flag. Emphasize that you’ve eliminated past debts, stabilized your finances, and are in a better position to pay rent reliably. If possible, highlight any positive financial changes, such as a new job, improved savings, or consistent on-time payments since filing.

If you’re worried about how a landlord will react, try preparing a short letter to include with your rental application. This letter should be honest but reassuring, focusing on your financial stability rather than dwelling on past struggles. For example:

"I wanted to address the bankruptcy you may see on my credit report. Due to unexpected medical expenses/job loss/etc., I needed to file to get back on track financially. Since then, I’ve rebuilt my savings, maintained steady employment, and kept up with all my bills, including rent. I take my financial obligations seriously and can provide references from previous landlords to confirm my history of on-time payments."

How To Get Approved for a Rental After Bankruptcy

Renting after bankruptcy can feel daunting, but plenty of landlords are willing to work with responsible tenants. The key is to show that you’re financially stable and can reliably pay rent.

You can also improve your chances of getting approved by:

• Rebuilding your credit by paying your bills on time, getting a secured credit card, or utilizing rent-reporting services*

• Offering a larger security deposit (if that’s possible for you)

• Applying with a co-signer

• Applying for properties managed by private owners rather than big property management companies

Be upfront if needed, focus on your fresh start, and highlight what makes you a great tenant. Many renters bounce back quickly after bankruptcy — you can, too!

*If you can self-report your monthly rent payment to the credit bureaus, you can actually use your rent to help you build good credit!

What Happens to Renters During a Bankruptcy Case?

If you file for bankruptcy while renting, your options depend on whether you're current on rent or behind on rental payments. Here’s the general overview of what happens and whether you need to talk to your landlord about the bankruptcy in the first place, plus a section on how this differs for Chapter 7 and Chapter 13 filers.

If You’re Current on Your Rent

You can stay in your rental without issue as long as you keep making on-time payments. Bankruptcy shouldn’t affect your current lease unless your landlord has strict policies about renewals.

That said, your lease is still subject to renewal policies. Some landlords may choose not to renew based on credit history, even if you’ve been a good tenant.

If You’re Behind on Rent

If you’re behind on paying your rent, your options differ based on whether you want to stay in the rental or not:

• If you want to stay in your rental, you usually need to catch up on payments within 30 days of filing your bankruptcy case.

• If you’re okay with leaving your rental, you can walk away from the lease and any unpaid rent from before you filed your case since it will be discharged in bankruptcy.

Note that your landlord may try to evict you, but bankruptcy’s automatic stay can temporarily halt eviction proceedings — unless the landlord already has a court judgment.

Do You Need To Tell Your Landlord When You File Bankruptcy?

As a general rule, you don’t have to notify your landlord of your bankruptcy filing. But the bankruptcy court will let your landlord know about it when it sends out Official Form 309. This document lets creditors and interested parties know about the bankruptcy. 

Depending on your relationship with your landlord, it might be a good idea to give them a heads- up when you file bankruptcy. This could make it easier for them to know what to expect later on in the bankruptcy process. It may also make it easier to negotiate with them if you have any late payments or need a little help making future rent payments.

If you’re not behind on rent, your landlord most likely won’t care that you filed bankruptcy. But when your bankruptcy is over, you can take advantage of the goodwill you created by asking if they’ll report your on-time rent payments to the major credit reporting bureaus. This will help rebuild your credit score and improve your credit history.

How Rental Agreements Are Treated in Chapter 7 vs. Chapter 13 Bankruptcy

If you're renting when you file for bankruptcy, how your lease is treated depends on whether you file Chapter 7 or Chapter 13.

In Chapter 7 bankruptcy, you can choose to keep your lease (assume it) or walk away from it (reject it). If you want to stay, you’ll need to state your intention in your bankruptcy paperwork. And, again, you’ll need to be or get up to date on your rental payments or you risk being evicted.

In Chapter 13 bankruptcy, your lease follows a similar process, but if you're behind on rent, you may have the option to catch up through the required payment plan. This can make Chapter 13 a better choice for renters who need more time to pay off past-due rent. However, you’ll still need to make ongoing rent payments on time after filing, as new debts aren’t included in your bankruptcy discharge.

Regardless of which chapter you file, bankruptcy doesn’t erase future rent obligations. If you plan to stay in your rental, keeping up with payments is essential. If you're struggling, consider negotiating with your landlord or exploring local rental assistance programs.

What if Your Landlord Is Trying To Evict You?

Facing eviction can be stressful, but understanding your options can help. An eviction lawsuit happens when a landlord asks the court to order a tenant to leave, usually for unpaid rent or violating the lease.

What happens next depends on whether the landlord has already won an eviction judgment. 

• If the landlord hasn’t already won an eviction judgement: Filing for bankruptcy may temporarily pause the eviction process through the automatic stay, giving you time to catch up on rent or make other arrangements. 

• If the landlord has won an eviction judgment: You’ll likely need to move out and may still owe unpaid rent.

Every situation is different, so if you’re dealing with eviction, it’s worth checking your state’s tenant protections or reaching out to a legal aid organization for guidance.

Filing Bankruptcy Before Your Landlord Has a Judgment for Eviction

The automatic stay is a major benefit of filing bankruptcy. It goes into effect as soon as you file bankruptcy, and it stops all debt collection activities, including eviction. However, this protection is temporary, and the landlord can also ask the bankruptcy court to lift the stay.

Your ability to stay in your home at this point will depend on your state’s laws. Some states give filers 30 days from their bankruptcy filing date to catch up on missed rent payments.

If you’re not in one of these states, you might still have a chance to keep your lease and pay back your past-due rent. But your landlord must agree to this. 

Assuming you’re an otherwise good tenant, they may agree to let you stay and pay back your past-due rent, especially if you can do it with a lump sum. That’s because if they don’t agree and you have to move out, any past-due rent you owe them will be discharged in the bankruptcy, and they’ll get nothing.

Filing Bankruptcy After Your Landlord Has a Judgment for Eviction

If your landlord already has an eviction judgment against you before you file bankruptcy, it’s typically hard to stop the eviction. 

You can try filing a certification with the bankruptcy court and explaining any defenses you have to the eviction. The defenses must be recognized by state law (eviction actions take place in state court and apply state law). 

Even if you have a valid defense, you’ll also need to show you have all the money to pay any unpaid rent within 30 days of filing your bankruptcy case. 

If this applies to you, you may want to consider having a free consultation with a bankruptcy attorney to get legal advice about your situation.

Let’s Summarize…

Filing for bankruptcy can make renting more challenging since landlords often check credit, but it's definitely not impossible to find a new place to live. 

Your chances of getting approved depend on factors, like how long ago you filed, your current credit score, and your history as a tenant. Many landlords are understanding if you're honest about your situation and can show them you're now financially stable and able to pay rent reliably. 

If you're already renting when you file for bankruptcy, you can usually stay in your current place as long as you're up to date on rent payments.