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Question (by Pastor Albanos [MD]) Jul 6, 2019 8:45 PM
       Question (by plenty [MO]) Jul 6, 2019 9:25 PM
       Question (by Still Learning [NH]) Jul 6, 2019 9:37 PM
       Question (by Mike [TX]) Jul 6, 2019 9:39 PM
       Question (by #22 [MO]) Jul 6, 2019 9:58 PM
       Question (by Pastor Albanos [MD]) Jul 6, 2019 10:24 PM
       Question (by Mike [TX]) Jul 6, 2019 10:45 PM
       Question (by myob [GA]) Jul 7, 2019 8:01 AM
       Question (by Still Learning [NH]) Jul 7, 2019 8:47 AM
       Question (by S i d [MO]) Jul 7, 2019 9:00 AM
       Question (by cjl [NY]) Jul 7, 2019 9:15 AM
       Question (by myob [GA]) Jul 7, 2019 11:02 AM
       Question (by 6x6 [TN]) Jul 8, 2019 7:22 PM
       Question (by JKJ [MA]) Jul 9, 2019 5:34 AM
       Question (by Hoosier [IN]) Jul 9, 2019 2:56 PM

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Question (by Pastor Albanos [MD]) Posted on: Jul 6, 2019 8:45 PM

Good Evening,

I have someone who filed for Chapter 13th bankruptcy last year and wanted to Rent my property. She has a good job now with good income.

How do I protect myself?

Question (by plenty [MO]) Posted on: Jul 6, 2019 9:25 PM

Ask if the BK is closed. Closed? Ok i consider your application --99.203.xx.xx

Question (by Still Learning [NH]) Posted on: Jul 6, 2019 9:37 PM

What are you protecting yourself from? Do you know why they filed? Job loss, small business closure, medical? Was their credit history clean before the trouble that caused the bankruptcy or is there a long history of poor financial moves that finally caught up with them. People with bankruptcy can have a hard time getting a rental and may stay for several years but you need to screen carefully.

Question (by Mike [TX]) Posted on: Jul 6, 2019 9:39 PM

If your smart you will move on to the next application.

Question (by #22 [MO]) Posted on: Jul 6, 2019 9:58 PM

By not renting to this individual.

Question (by Pastor Albanos [MD]) Posted on: Jul 6, 2019 10:24 PM

She told me that her Parents passed away and because of the expenses trying to help them before passing, She filed for Chapter 13th bankruptcy.

She is currently working for a Government agency with good income. I read somewhere that Trustee on Chapter 13th Bankruptcy has to approve new debt obligations.

Although I am compassionate, I wanted to protect myself.

Thank you for for your support

Question (by Mike [TX]) Posted on: Jul 6, 2019 10:45 PM

Be compassionate. Give her the classifieds and tell her to have a nice day. Your a fool if you rent to someone who has an ongoing bankruptcy, especially one that new. Your opening yourself up to a bucket of problems . The court can make you return any money she pays you to the court. They will then take that money and divide up with the people she owed when she filed bankruptcy.

A few years ago I sold a business to a guy . He couldnít make it in that business and filed bankruptcy. I received a letter from the court telling me to send the money he paid me to buy the business to the court so they could distribute it to the people who he owed when he filed bankruptcy. I was in for a fight of my life to keep that money. Iím telling you , be smart and let this girl move on!

Question (by myob [GA]) Posted on: Jul 7, 2019 8:01 AM

This is one of our 3 disqualifies-- can't be in BK. The BK court makes all their decisions not the applicant.

Question (by Still Learning [NH]) Posted on: Jul 7, 2019 8:47 AM

Itís hard to tell whether this person is still in the process or has a discharge. The trustee may have to approve. The approval would be based on their financial ability to afford it and pay. I have no idea if that is a quick process or not. If you are considering, I would contact the trustee to ask procedural questions and do a complete screening to make sure they are squeaky clean and meeting every one of your screening criteria except credit score.

Question (by S i d [MO]) Posted on: Jul 7, 2019 9:00 AM

Double security deposit, first and last month's rent paid in advance. Monthly inspections inside. 4 emergency contacts to track her down. Require auto-draft rent payments. The day it bounces, file eviction papers.

If she meets all of her obligations for the next 3 years, her life will improve dramatically and she can rejoin the well-trusted ranks and no longer require the extra safeguards. Her good job and good income should be able to support this.

I am being 100% serious. If you're not prepared to do this or she isn't agreeable, move on to the next applicants. Life has consequences when a person borrows money and does not repay it.

Question (by cjl [NY]) Posted on: Jul 7, 2019 9:15 AM

Just thinking out loud: did she have a house that was foreclosed on? If so - what was the property left like (condition)? If not, I would certainly ask the landlord where she lived at that time what the condition of the property was.

It may not have ANYTHING to do with how she "lived" in the property just the fact that she doesn't know how to manage her money (or something just "bad" happened and that was the way out).

It's up to YOU to figure out if YOU want to keep digging. Also, check your state/local laws before you double the security deposit and/or charge last month's rent as a requirement .. some areas that's a big no and is "illegal".

It doesn't necessarily mean that they took the landlord as part of the bankruptcy proceeding. I advise all of my tenants that "if they want to stay, they pay". It's as simple as that. I'm not a creditor to you if you file.

Question (by myob [GA]) Posted on: Jul 7, 2019 11:02 AM

Some here don't understand the power of the BK court. You can make all the demands you want of tenant.

cjl that last sentence was hysterical!!!!!! If you like a 5K fine slapped on you-- keep those thoughts and actions. Here's a shocker-- even if the tenant leaves you off the "creditor list" you are responsible to KNOW they're in BK. It's public record-- ignorance to it is no defense.

Someone mentioned deposits increase-- doesn't matter if BK administrator wants it-- they'll send you a letter advising you the deposit belongs to the court-- and will be distributed to the claimants with standing-- that isn't the LL BTW.

Question (by 6x6 [TN]) Posted on: Jul 8, 2019 7:22 PM

I understand you being a pastor you are compassionate but people will take advantage of that. Tenants will lie about everything so you need to make sure and screen very well. Do all credit and background checks and verify everything such as employment and pay, rental history if any, court records for evictions and judgements, ect...Screen X3 is your first line of protection. Know your federal,state and local laws. I also agree with others in that I would not rent to someone in BK.

Question (by JKJ [MA]) Posted on: Jul 9, 2019 5:34 AM

Pass them up, let another seasoned LL due their due diligence and throughly check this prospect . No offense meant here by this, but if you need to ask you most likely arenít familiar with the BK process, ( nor am I), plus your compassionate. Both inexperience and compassion can land you with a problem tenant real quick, let her rent from someone thatís been around the block that knows how to protect themselves in this situation.

Question (by Hoosier [IN]) Posted on: Jul 9, 2019 2:56 PM

If bankruptcy is open, I would not rent.

If closed, I like Sid's response.

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