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Rental applicant with recent business Chap 7 – yes
by Kerry (Oregon)
on May 23, 2017 @19:36
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I’d like your opinions on an applicant for a house I rent. The applicants had a restaurant that was vastly popular (per reviews and local news write-ups – yes I checked them. Also many youtube videos of their business), but could not make it work and had to file Chap 7 bankruptcy. They closed the doors in October 2016 and it was discharged with a Final Decree dated April 21st 2017. Per applicant they got into a bad lease (a news article also said this ) for a building that needed costly upgrades and maintenance, for which they were responsible, that sucked them dry. Since they closed the doors the husband has a new job and she has started with Starbucks in a management track program. Current income is sufficient at about 3x the rent. Both employment verifications were glowing… “go getters”,”long term prospects”, “very good hire” and so on. Prior to the restaurant they had long-term steady employment. Reason for moving… relocating to be closer to work and family. Want to stay at least 3 years for son to finish High School at one place. 10 year rental history… haven’t talked with landlord yet… have message in. They have been very up front and organized in their dealings with me. In fact they brought up the Chapter 7 even realizing it may not yet show on any credit checks. They have retirement savings (public utility pension), but can't touch that. They have savings to cover rent and security and other deposits (gave me their bank statements with last 6 month. They have offered to prepay first 3 months rent.
So what do you think about renting to them? Is there anything on the Chapter 7 I should check on in particular?
Thanks!!
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Re: Rental applicant with recent business Chap 7 – yes
by Katiekate (New York)
on May 23, 2017 @21:56
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Chapter 7 is NOT for business BK
Second....the BK shows the day it is filed. If they claim it doesn't show, then they are not telling you the truth about something.
Ask the prospect for the full case number and the district court it was filed in. You can go to PACER and look it up for yourself.
Finally... did you call the references...did you do the leg work to find the phone numbers yourself? There just seems to be some misinformation here....I would definitely take a long hard look at the full credit report.
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Rental applicant with recent business Chap 7
by Nicole (PA)
on May 24, 2017 @07:32
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you pull their bankruptcy on pacer and it will show you all of their debts. while in theory they should be restaurant supply houses, liquor distributors, etc., there will be personal debt since the cash flow wasn't coming in.
yes, it will show on their credit - it should have shown up the first month they filed. You want to be sure it was disCHARGED, not disMISSED ... big difference.
not sure how it works but they can't have a healthy bank account while in chapter 7
their credit score is going to be less than 600 if you pull it.
If employment was verifiable, I'd take them
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