I am often asked by people who are considering filing bankruptcy what the downsides to filing are. After helping hundreds of clients recover from financial difficulties, frankly, I haven’t seen very few. The people I have helped have been able to recover from overwhelming debt, stop garnishments and harassing debt collectors, and been able to rebuild their credit score faster than any of the non-bankruptcy options they might have had.
However, when it comes to leasing a new home or apartment, people who filed bankruptcy recently can run into landlords and property managers who refuse to rent them. Those landlords usually own larger, multi-unit properties. I usually recommend that my clients look into smaller properties if they need to lease a home after they file, including someone who is renting. These property owners seem to be more accommodating to people in my clients’ position.
Keep in mind that although your current landlord will get notice of your bankruptcy filing (as required by the bankruptcy code), you can’t be evicted for filing bankruptcy. On the other hand, if you need to terminate a lease before the end of your rental term, bankruptcy will prevent the landlord from coming after you for any unpaid rent.
If you have questions about how filing bankruptcy could affect you, we hope you’ll visit us for a free consultation with an experienced bankruptcy attorney in Denver, Colorado. You can schedule an in-person consultation by calling us at 303.331.3403, or you can schedule a phone consultation by clicking here.