 Getting
an apartment after a bankruptcy
|  Dear
Dr. Don,
I went through a divorce two years ago and was left
with a large amount of credit card debt. Over the past two years
I have been doing my best to pay it off and have NEVER been late.
I even moved back home with my parents and allocated all of my income
toward repaying the debt.
I eventually came to the realization that I would never get out
from under the debt. I have to move out in July, and there is no
way possible to do that without eliminating the debt, so I did by
filing for bankruptcy. Now my friend and I have been apartment hunting
and we are having a hard time getting one because of my bankruptcy
filing. What can I do? Why can't we just put it in her name? Would
it be possible for my parents to co-sign for me in
this situation? -- Anonymous Angst
 Dear
Anonymous,
I understand and respect the sacrifices you made in attempting to
repay your outstanding credit card debts. Never being late with
a payment up until the point when you file for bankruptcy, however,
doesn't carry much weight when a landlord reviews your credit history.
Illness, loss of a job and divorce are the big three when it comes
down to which factors trigger a personal bankruptcy filing. Divorce
can be the trickiest to navigate through because of the joint marital
credit obligations and the creditors not having to abide by the
allocation of debt decided in the divorce decree.
You'll have much better luck finding a place that will rent to
you if your friend puts the apartment in just her name or your parents
agree to co-sign the lease agreement, assuming your
friend and your parents both have good credit. If your friend puts
the lease in just her name she's ultimately responsible for the
entire lease payment. If I were her, I'd prefer that your parents
co-sign.
If your parents agree to co-sign, they should make
sure that it isn't a continuing agreement -- meaning that any lease
renewals require them to reaffirm their status as a co-signer
and any assignment of the lease to a roommate other than you doesn't
carry with it their obligation to pay the new person's rent. If
your parents go this route, they should have their attorney review
the lease agreement. (You should pay the attorney's fee.)
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