RSS

Renting an Apartment Just After Filing Chapter 7 Bankruptcy in Arizona

June 03

Renting an Apartment Just After Filing Chapter 7 Bankruptcy in Arizona

We recently had a customer come into our Mesa bankruptcy office to launch a Chapter 7 individual bankruptcy. Our customer presently lives in a rented residence in Mesa but wants to get a more affordable place to stay.

Our customer’s lease on his apartment goes through the end of the year and he must declare bankruptcy before this. The dilemma that the client has is that he might not be able to get a new lease on a residence right after declaring bankruptcy.

Could the Chapter 7 bankruptcy proceeding that he is completing make acquiring a new lease contract impossible?

A good thing to always bear in mind is that the months right after a personal bankruptcy recording are a time when an individuals credit rating is the most damaged. Credit rates usually are at their lowest right after a Chapter 7 or Chapter 13 individual bankruptcy. Our Mesa AZ chapter 7 attorney informed our client that it is very possible that he would have a hard time getting a landlord who would lease him a place just after proclaiming bankruptcy.

A better choice for our client, as opposed to declaring bankruptcy and then attempting to secure a new place to rent, could be for our client to sign a new rental on a different property before filing bankruptcy and then reject his current lease in the Chapter 7 individual bankruptcy filing.

Our bankruptcy client took the recommendations of our Mesa bankruptcy attorney and he has now signed a new lease contract on a lower priced spot to live. Our client will be rejecting his present rental in his Chapter 7 individual bankruptcy filing. Our client’s Chapter 7 bankruptcy will also clear away any future rent to be paid and penalties incurred for not fulfilling the lease‚Äôs provisions.

 

Posted by on June 3, 2012 in Arizona

Leave a comment

Tags: , , , , , , , ,

Leave a Reply