The existence of bankruptcy filings by a prospective tenant provides information to a landlord that may be a deciding factor in determining whether to enter into a lease for the landlord’s property. LandLordStation.com does a bankruptcy search as part of each tenant screening we perform. You can learn how to find bankruptcy records, however it is expensive and time-consuming to find bankruptcy records for every state.
Bankruptcy filings are sometimes an indicator of an applicant’s ability to pay. There are circumstances that make filing bankruptcy a necessity that may not reflect poor performance on the prospective tenant. An applicant may have had large medical bills that could only be discharged in bankruptcy. With the bankruptcy search we perform, you will be able to use the information to better evaluate your applicant. The comprehensive screening by LandLordStation.com is easy and economical.
When evaluating bankruptcy filings, it is important to know the types of bankruptcy. There are five types of bankruptcy filings and four of them could be the type of bankruptcy filings used by individuals. When doing a bankruptcy search or learning how to find bankruptcy records, it is important to find bankruptcy records that pertain to your prospective tenant.
The Bankruptcy Code provides for five different types of bankruptcy filings, Chapter 7, Chapter 13, Chapter 12, Chapter 9 and Chapter 11.
Chapter 7 bankruptcy filings are available for individuals. Chapter 7 is called straight bankruptcy or liquidation. The bankruptcy court appoints a trustee who administers the bankruptcy. The individual filing for bankruptcy usually retains all the typical types of household goods and clothing. He may also retain real estate and vehicles as long as he does not have more equity in those items than he can exempt. If the bankruptcy trustee allows an individual in bankruptcy to keep a car secured by a car lien or a house encumbered by a mortgage, the individual filing for bankruptcy must pay all car and mortgage payments as they fall due and pay the insurance on those items. A Chapter 7 bankruptcy usually lasts about four to six months. At the end of the bankruptcy, most debts are extinguished through a discharge of debts that usually leaves your applicant in a better position to meet the obligation of rental payments.
Chapter 13 bankruptcy filings are another type of bankruptcy available for individuals. This bankruptcy lasts for the duration of a debt repayment plan, from three to five years. General, unsecured creditors are usually only repaid a small percentage of what is owed, but past due taxes must be paid in full, as well as arrearages on secured debt, such as a mortgage or car loan. This bankruptcy may allow individuals to keep a home or car even if they have become seriously delinquent on the loans. At the end of a successful bankruptcy, most debts are extinguished through a discharge of debts.
Chapter 12 is a type of bankruptcy available for family farmers. It functions much like chapter 13 with the same benefits and provisions.
Chapter 9 is a type of bankruptcy filings for municipalities.
Chapter 11 includes bankruptcy filings that are occasionally used by individuals but are primarily used by large corporations, which are insolvent and wish to pay off their debts through a repayment plan.
The LandLordStation.com bankruptcy search is comprehensive and keeps you from the necessity of learning how to find bankruptcy records. Find bankruptcy records and analyze them to better evaluate your prospective tenant. Visit the LandLordStation.com website and click on the “Community” button at the top of the page and you will find on-going discussions with leaders in the real estate management community regarding this issue if you have any questions. If you don’t see information that answers your question, you can ask the Community your question at no charge. This is a unique and invaluable service that LandLordStation.com provides our customers. For the best source of landlord bankruptcy information and other great articles, visit LandLordStation.com.
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