rent candidate has chapter 7 bankruptcy discharged 5 ys ago

7 Replies

I have a guy (with 4 yr son) whose background checks indicates 700+ credit score, stable federal job (3X salary vs rent) for last 8 years, good references from past 2 landlords BUT had chapter 7 bankruptcy that was discharged in 2013. 

He wants to rent with a lady (she has 15 yr daughter) with 700+ credit score, 2x salary vs rent job, BUT she has "judgement from court" for child support services ( She needs to pay  for child support). Don't know the amount yet. 

What are your thoughts renting SFR to them?

700 credit score means they care about paying bills. Bankruptcies happen, and the fact that he was able to build to 700 in 5 years is a testament to his bill paying diligence. Child support also happens. That doesn't mean she was negligent in paying bills. A court order must be filed and a judgment granted in order to secure child support. Even if she was paying $1,000 a week to the father, without that judgment there is no RECORD of payment. She the judgment was actually to her advantage to prevent nasty surprises in the future.

I second @Ray Harrell ‘s thoughts. We don’t rent to anyone who has had a bankruptcy within the past year, but outside of that timeframe we will rent to them as long as they meet the minimum credit score.

Originally posted by @Anish Arora :

I have a guy (with 4 yr son) whose background checks indicates 700+ credit score, stable federal job (3X salary vs rent) for last 8 years, good references from past 2 landlords BUT had chapter 7 bankruptcy that was discharged in 2013. 

He wants to rent with a lady (she has 15 yr daughter) with 700+ credit score, 2x salary vs rent job, BUT she has "judgement from court" for child support services ( She needs to pay  for child support). Don't know the amount yet. 

What are your thoughts renting SFR to them?

Depends. How desparate (vacancy time?) are we?

What did you decide to do?  I'm in a similar situation with a  potential renter.  She has a 700+ credit score with a bankruptcy from 5 years ago and good income.  I'm considering asking her to up the security deposit 1.5 times what I normally ask.  I'm not desperate to fill the vacancy yet; however, I'm willing to work with someone who on paper is showing she has turned things around.

I agree with @Ray Harrell . Bankruptcy can and does happen. I have seen everything from medical bills, loss of a spouse, divorce, loss of jobs to identity theft cause someone to have to file. Bankruptcy does not necessarily reflect the person's track record or ability to pay. Many times it's a result of life's unavoidable circumstances.