We recently had a customer come in to our Arizona bankruptcy law office to file a Chapter 7 personal bankruptcy. Our customer currently lives in a leased property but would love to find a more cost-effective spot to stay.
Our customer's lease on his condominium runs through the end of the year and he must file bankruptcy before then. The issue that the client has is that he may be unable to receive a new lease on a property soon after filing for bankruptcy.
Could the Chapter 7 bankruptcy that he's completing make obtaining a new lease contract impossible?
A good thing to always always remember would be that the months right after a personal bankruptcy registering are a time when a client's credit is the most impaired. Credit scores are typically at their lowest right after a Chapter 7 or Chapter 13 bankruptcy recording. Our Mesa AZ bankruptcy lawyer let our customer know that it is quite likely that he'd have a difficult time getting a property manager who would rent him an apartment immediately after filing bankruptcy.
A better option for our client, rather then filing for bankruptcy and then trying to secure a new place to stay, might be for our client to sign a new lease on a different property before declaring bankruptcy and then reject his present lease in the Chapter 7 bankruptcy filing.
Our bankruptcy client took the recommendations of our Tucson AZ bankruptcy law firm and he has now signed a new rental on a more inexpensive apartment to live. Our client will be rejecting his present lease contract in his Chapter 7 individual bankruptcy filing. Our client's Chapter 7 bankruptcy completing also will clear away all future rent to be paid and penalties incurred for not fulfilling the lease’s terms and conditions.
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