Any thoughts on accepting an applicant who filed for Chapter 7 bankruptcy four years ago?

Any thoughts on accepting an applicant who filed for Chapter 7 bankruptcy four years ago?

We only accept discharged bankruptcies

Can they get a guarantor or co signer?

No they cannot. It sounds like a safe bet though, if it’s been discharged.

If its discharged, its fine. They can't add more debt, and they probably have more debt to income ratio. Never accept an open BK

As long as discharged and was able to establish some good credit after

What is the downside of accepting someone with a bankruptcy? Things may be changing and we may need to adapt our criteria as a result. Just a comment on conditions today.

If its open, like a 13 on payment plans, they can add rent to it at anytime. Otherwise, I look at bankruptcy as a 2nd chance.

If they filed 4 yrs ago and it's discharged, and they otherwise qualify, they're a fairly safe bet (unless they lose their job after move in) because they can't file bankruptcy again for at least two more years. Plus with a chapter 7 they started over with a fresh slate, no previous creditors to come after them.

We take them if they are willing to pay a higher deposit and did not owe another property

Remember to change your overall policy for EHO if you do and allow
Everyone with same circumatances

We had some residents who were some of our best residents. They'd filed for bankruptcy due to either: losing home during former housing crisis, credit trouble due to student loans that had become due (even though they'd tried to 'better themselves', or unexpected medical costs (especially if young and didn't have insurance or their employer didn't carry insurance). We looked to see the roots of where their financial problems came from. If they had 20 cards for multiple phones (would have phone until phone company cut them off and then go get another phone from a different company, and then repeat process), non-necessary stuff at multiple dept stores, or big trucks (when they couldn't afford them), it kinda showed us they had a pattern of what they considered important, and what was beyond their control, re financial decision making problems. Have to be clear in what you post your screening policies to be and consistent with everyone.

Interesting. That must have been a challenging policy to write up. Thank you!

What does your TSP permit? This should be clearly outlined removing a biased approval or disapproval from the equation. Are you using a third party screening vendor?

It was, but at the same time, lawyers were adjusting the wording regarding former felons that had been in courts and found to be discriminatory. Some people have had rough pasts, and overcome them. Some make excellent residents and are a contribution to a community. Unfortunately others aren't. Wish there was a crystal ball that always told us which were which...

Check your PNP

Wow reading all these comments makes me even more thankful that our company has a very defined set policies and a screening company to handle a lot of the issues presented here. Some are a Fair Housing Lawsuit waiting to happen. Please BE CAREFUL! These lawsuits can go against you as well as the Company you work. In this industry you have to learn to be a professional empathetic person. Too many people get too personally involved. That can be very dangerous!

I was thinking the same thing

I am the owner, so I set the policies. I’ve gotten feedback and advice from our attorney, our screening company and my exec team to help me make the right decision. I sometimes like to also get insight from industry colleagues, because nothing beats experience.