Law & Legal & Attorney Bankruptcy & consumer credit

How to Rent a House After Filing Bankruptcy

    • 1). If you are in a pending Chapter 7 bankruptcy, an attorney will usually recommend that you stay in your current living situation during the pendency of your Chapter 7 bankruptcy case, usually lasting around one to two months. After the case is over, the bankruptcy court will decide what will happen to your estate's assets, such as your house, and how those assets should be distributed to pay off creditors. If you do have to leave your home during your bankruptcy case, seek the assistance of your attorney since you will need court permission to sign any rental agreements.

    • 2). If you are in a pending Chapter 13 bankruptcy case, you must start looking for home options to rent that fall within your budgeted living expenses. When a Chapter 13 Plan is confirmed with the Bankruptcy Court for a three to five year plan term, the Court will also allot a monthly budget for living expenses, including housing. Look for homes to rent that fall within your living expenses budget. Since you will need permission from your assigned Chapter 13 Trustee, it's best to start looking for homes to rent as soon as possible.

    • 3). Gather rental housing estimates and paperwork to give to your bankruptcy attorney. The Chapter 13 Trustee will review all paperwork and documentation for any new lease a debtor signs while in Chapter 13 bankruptcy. The Trustee will want to see the new lease amount, the lease term and any other charges or expenses the debtor will be responsible to pay. It is the Trustee's job to oversee the debtor's bankruptcy case and make sure any leases signed do not negatively affect the effectiveness of the confirmed Chapter 13 Plan or harm creditors.

    • 4). Receive permission from the Chapter 13 Trustee and sign the lease to rent the home. The Chapter 13 Trustee will review all paperwork and sign a Stipulation with the bankruptcy attorney giving the debtor or joint debtors permission to sign a new lease to rent a home while in bankruptcy.

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