Renting A Property After Processing Chapter 7 Individual Bankruptcy In Arizona
We recently had a customer come into our Tucson bankruptcy law office to file for a Chapter 7 individual bankruptcy. Our customer presently lives in a rented apartment in Tucson but wants to get a cheaper place to live.
Our customer’s lease on his apartment goes through the end of the year and he must declare bankruptcy before then. The issue that the client has is that he might not be able to receive a new lease on a residence just after declaring bankruptcy.
Will the Chapter 7 personal bankruptcy that he is registering make acquiring a new lease unachievable?
A good point to always consider is the months immediately following a bankruptcy filing are a time when a persons credit score is the most weakened. Credit scores usually are at their lowest immediately following a Chapter 7 or Chapter 13 bankruptcy processing. Our Tucson chapter 7 attorney let our client know that it’s very likely that he would have a difficult time finding a property owner who would rent him a property immediately after proclaiming bankruptcy.
A better option for our customer, rather then filing for bankruptcy and then attempting to secure a new place to rent, would be for our client to sign a new lease contract on a different residence prior to declaring bankruptcy and then reject his existing rental in the Chapter 7 individual bankruptcy filing.
Our bankruptcy consumer took the counsel of our Tucson AZ bankruptcy law firm and he has signed a new lease on a lower priced place to live. Our client will be rejecting his present lease in his Chapter 7 personal bankruptcy filing. The chapter 7 bankruptcy also will clear away all future rent to be paid and penalty charges accrued for not satisfying the lease’s conditions.