Broken Leases & Bankruptcy

Filing for bankruptcy presents a unique set of challenges and pressures. Although filing for bankruptcy can be the first step towards repairing your credit, it can mean a number of lifestyle changes in the short term. One way to cut down on your expenses, if you rent your home, is to move to a place with lower rent. However, it’s important not to act too brashly when moving: breaking a lease can make it much more difficult to find a new place.

Similar to credit scores, it is common for rental property owners to keep track of the financial behavior of renters. In the same way that not making loan payments can lower your credit score, not paying rent negatively affects your reputation among landlords. Breaking a lease, however, is much more severe than simply paying your rent late. Some apartment buildings entirely prevent people who have a history of broken leases from finding a new place.

It is also typical for landlords to check the credit history of new applicants. If you are currently filing for bankruptcy, this can negatively affect your chances of being accepted at a new place. Combined with a history of broken leases, it could suddenly become nearly impossible to find a decent home. This is not a fate anyone wants, but managing your bankruptcy well can lessen the negative effects of paying off your debts.

Contact Us

The experienced Boca Raton bankruptcy lawyers can work with you to create a plan for your bankruptcy. With their years of experience, the lawyers of Eric N. Klein & Associates, P.A. can help you reorganize your finances and work through the filing process without running the risk of losing your home. To discuss your case with a lawyer, contact us today at 561-353-2800