If you’re like the thousands of people facing foreclosure and bankruptcies these days, you may be at a loss as to how you can move forward. And in many cases, “moving” is the main problem. If you’re wondering how to find a new place to live in spite of your circumstances, take heart – you’ve actually got quite a few options.

Recovering from bankruptcy

If you’ve just been through a bankruptcy, chances are you’ve got to find a new place to live. And unless you’re able to stay with a friend or family member, you’ve got to find a place to rent.

The first question on the minds of those who have undergone bankruptcy is whether they can get an apartment given their ruined credit rating. This is because most landlord and apartment rental associations make it a common practice to check potential renters’ credit scores before letting them sign a rental agreement.

The short answer is that you can absolutely find a new place to live. Just know that your past payment history, reference possibilities, and current savings will determine how quickly that can happen.

Know your options

It’s important to recognize that people file bankruptcy for a variety of reasons. Filing for bankruptcy doesn’t automatically mean you’re incompetent when it comes to money. It could be that a spouse’s spending habits drove your finances over the edge, or that you encountered unexpected expenses such as medical costs which you could not control.

When figuring out a game plan for where to move, start by evaluating your current situation. The following scenarios will place you in the best possible position for moving forward after bankruptcy so you can succeed at finding a place to live.

• On-time payment history. If your credit report reflects that you consistently made payments to your creditors by the required due date, you can use that to your advantage. Make sure any potential landlord understands your reliability when it comes to payment obligations. Explain that your bankruptcy was due to extenuating circumstances beyond your control (assuming that was the case). State that because those circumstances are behind you, you’re ready to resume your punctual payment record.
• Positive references. If you’re able to drum up positive references from past landlords or creditors, use those to your advantage. Ask your references for signed statements that point out your reliability as a renter or bill payer. Show the statements to your potential new landlord and encourage that person to contact your references should he or she have any further reservations.
• Sizeable savings. If you’re able to produce a large deposit along with an extra month of rent payment, most landlords will overlook your bankruptcy. This gesture shows the landlord that you’re willing to take your new rental obligation seriously. It also provides the landlord with a safety net should you fall behind on your rent payments.

Plan in advance

If you’re not able to produce on on-time payment history, positive references, or a decent chunk of savings, you may need to explore a few alternatives.

• Apply for your apartment in advance of your bankruptcy. If you know a bankruptcy is coming and you’re sure you’ll need a new place to live, file an application with the landlord before your bankruptcy goes through. That way, when a credit check is run on your name, you’ll still be in the clear. You can get preapproved for rental without having to explain your current financial situation.
• Work out an agreement with a friend or family member. If you need extra time to save up enough money for a large deposit and extra rent payment, ask a family member or friend to let you stay with him or her. Because you won’t be able to pay for your stay, it’s wise to offer to do chores or housework in exchange for having to pay rent. That way, your friend or family member won’t feel like he or she is being taken advantage of.
• Try to rent from an individual instead of a management company. Renting from an independent landlord can provide you with much more flexibility than you’d get from a managed rental company. Whereas rental companies may not be able to budge when it comes to their qualification rules, an individual may be better able to work with you to accommodate your specific situation.

On top of everything, remember that several rental agencies and independent landlords are having trouble finding renters in this down economy. If you can prove your dependability as a renter, they may be more than happy to oblige you with a rental agreement as you work to recover from bankruptcy.