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Bankruptcy means you opted to not pay your debts, the eviction or bankruptcy alone are deal breakers by themselves for me. There are always options though you just have to find them and make the sacrifices that come with them. Filing now would actually be a slight improvement for a landlord, you can't file again anytime soon, but really in most cases you will be in no worse situation since you forced your landlord to waste time and money taking you to court already.
It amazes me that in the internet age people still force landlords to take them to court instead of just moving out. You lose HUGE for the rest of your life by not leaving so just pack and get out because that is the end result anyway.
I decided 15 years ago when unable to work NOT to file BK and got a judgment (15 years old now) and a second judgment a few years later (creditor waited for interest to accumulate and for balance to reach a sum worth suing for). If I had filed BK 15 years ago, these debts would be gone and off my credit report by now.
Looks to me like BK would have been a far better decision for me. As long as I'm in minimum wage territory and unable to resolve the judgments, how is that better than bankruptcy?
The earlier judges were the fighting soldiers who established the realms. So they knew where the last lines were. These days, they were probably the college kids. Hence, you needed to show them the qualities that they reversed. Sadly, the qualities for the peace time kids are the wealth in the diplomats and the material richness.
Show them some good conducts. And wait for the results.
Good points, thanks for outlining the options and kind of what to expect. I'm currently looking at condos, wondering if using a realtor for rent by private owner condos could be a viable option for me in another year or so after I get my credit together? I am in an apartment now, wondering if I would be better off staying here and making the best of my situation.. Wondering if positive rental history for the next year or so will make any difference in making me appealing to landlords as a tenant? I m
In this situation you might have to be approved by the HOA or the condo assoc....they wont' approve you with the eviction and/or the BK.
you would be out of luck with us too. we have enough problems with financially sound tenants who experience one of the big three , divorce-illness-job loss .
we will not take anyone who already demonstrated an inability to pay or a lack of want to pay . not interested in anyone's bad luck story just on to the next applicant
To your point OP, many landlords have said on here that they look at a recent BK as someone that doesn't owe anyone money. BK's aren't the end of the world, evictions are much tougher.
To your point OP, many landlords have said on here that they look at a recent BK as someone that doesn't owe anyone money..........
I don't take anyone with an eviction. They are people who dug in their heels and refused to get out until judge ordered them to get out and sent the sheriff to physically throw them out. No thank you. They've done it before and I don't want them to do it to me.
Bankruptcies depend upon what I see on the credit report. 99% of the bankruptcies I see are caused by overactive consumerism and a lot of purchasing of things that the tenant had no way to pay for. Once the debt gets really high, there is a bankruptcy and almost always, there is continuing accumulation of debt after the bankruptcy has been discharged. Again, no thanks to that. I don't need tenants who spend money they don't have and end up not paying the rent because they want to spend the money elsewhere.
I have only accepted one bankrupt tenant. She lost an extremely high paying job, could not find another job. Her house went back to the bank voluntarily, without a foreclosure. There was not one late payment on any of her debts. She used her savings to keep the payments up until the debts was discharged. She didn't borrow anything after the bankruptcy.She had adequate retirement and SS funds to pay the rent.
That tenant is no longer with me because she got back on her feet, opened a new business, and purchased that rental house that she was in from me.
Other than that one tenant, I have yet to see anyone with a bankruptcy that gave me any confidence that I would get the rent paid on time without fuss or excuses.
Bankruptcy doesn't always mean you have opted not to pay your debts. Specifically if you file a Chapter 13 what you are basically telling your debtors is that you want to pay them but financially cannot afford to do so, so you are asking the court to approve a repayment plan for 3 or 5 years that is affordable and protects you from liens, lawsuits, garnishments, etc...
A Chapter 7 is basically telling your debtors you are not paying.
Either way I wouldn't rent to anyone with a BK, but it's not fair to say that all bankruptcies are equal or to insinuate that someone who files for BK is a deadbeat.
Has anyone ever thought of living in an extended-stay hotel/motel if they cant find a place to live. Even if they had to put their stuff in Public Storage for under $100 a month, it might be worth it till you can find a place.
From a retired manager's perspective, my job was to minimize risk. Someone with a bunch of debts and unpaid judgments is a bankruptcy waiting to happen. Which means, that if you get behind on rent with me, you can add the debt you owe me to your bankruptcy. And, you can delay an eviction by filing bankruptcy.
So, for me, I would rather have a dismissed Chapter 7 on your credit report. If your bankruptcy is already dismissed, and it was a Chapter 7 (Chapter 13 BKs basically remain open, and can be converted later to a Chapter 7, so they are also a risk), I would be more likely to rent to you.
I wouldn't care about any stories you told me about how good you are to be paying off your debts. In one ear and out the other. All I see is the glaring possibility for you to add the owner's name to your bankruptcy and a delayed eviction, possibly a destroyed rental - and no way to collect.
So, I suggest you file your Chapter 7 now. A year after it's dismissed, many landlords and property managers will rent to you, and you'll start getting opportunities to apply for credit so you can build up your credit again. The Chapter 7 will stay on your report for 10 years, but your score can be back up in the 700's and above within just a couple years of BK.
If you just try to pay off the debt, or file a Chapter 13, remember, that until those debts are totally paid off, your credit will be terrible. Then, the debt stays on your report for another 7 years - after you finish paying it off. The 7 years for something to fall off your report begins after your last payment.
Regarding judgments. A judgment can be renewed every 10 years. And, they keep adding fees, so the amount keeps growing. And, once they have a judgment, they can put a lien on your bank account. Surprise! One day, your bank account is empty and you also owe the bank a "lien fee" of around $150. They can also garnish your wages.
So, which looks like the better option to clean up your mess?
I had to file a Chapter 7 in 2014. It was dismissed in August 2014. My credit score is already back into the 700s. When I apply to rent, I'm just asked if it's dismissed and was it a Chapter 7.
Landlords also look at the debt to income ratio. With a dismissed Chapter 7 your debt is zero.
Also, you should know that if you file BK, if you make any type of payment or reaffirm the debt you owed to anyone, it renews the entire debt. So, don't do that.
And yes, judgments are included in the BK. They would also go away.
Filing bankruptcy is legal. It is there for people like you who ended up in a mess. It's a second chance. Why not take advantage of something the government says you have a right to?
As far as the eviction, that would be a no-go for me, sorry to say. Perhaps you'll get lucky and it won't show up on an eviction report. In my opinion, the eviction will be much harder to deal with as far as getting approved than a dismissed Chapter 7 bankruptcy.
I suggest you file Chapter 7 BK now. Stay where you are, because stability as a renter will also be in your favor. Time will be your friend.
Good luck. By the way, if you can follow directions and have the time, you can file your own BK. I did.
To your point OP, many landlords have said on here that they look at a recent BK as someone that doesn't owe anyone money. BK's aren't the end of the world, evictions are much tougher.
Thanks for the comment, true Indeed. I am wondering if I file BK and rebuild my credit if I will be able to rent in a few year's Time with a higher credit score and cash in the bank for a high deposit. I know the eviction automatically disqualifies me in a lot of cases but im wondering if rebulding my credit after BK would even give me half a shot.
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