Lately, we at Mile High Bankruptcy have noticed our clients are having trouble getting a place to live because of rising rents. Rents in the Denver metro area have risen 13.1% in the last year, and in some neighborhoods even more.
One client told me that three bedroom houses that used to rent in his neighborhood for $850 to $1250, are now going for $1500 to $2500 per month.
Because of so many new people coming into the housing market, landlords are also getting more selective in giving people leases if they have bad credit because they have many applications for a given property.
Sometimes Chapter 7 bankruptcy can help.
A landlord is only concerned with getting a tenant who will take care of the property and pay the rent. If you are a good person with a steady job, but have a lot of debts, the landlord may want to rent to you, but can’t because they know you may be sued by your creditors and garnished and will then not be able to pay him. Then, his name will be on the bankruptcy too—something all landlords want to avoid.
If a Chapter 7 bankruptcy is filed and you eliminate your debts, a prospective landlord may be more willing to rent to you because you are less vulnerable from other creditors, and more likely to pay him. Also, without, say, credit card debts, you may be better able to handle the rent in this rising rental market.
Call me, Peter Milwid, at 303-831-0733 for more information on how Chapter 7 Bankruptcy can help you.