Approve prospect that filed Chapter 7 bankruptcy?

I have a tenant prospect that on thier application for the park, noted that they filed Chapter 7 banruptcy in the past. If they clear all other requirements should I let them into my park? I can probably find other prospects fairly easily. Thanks for your answers!


Yes, I suggest you accept them. They are probably more likely to pay than before because they have the debt off their back and they know they can not pull that ‘stunt’ again for 7 years.

We only screen-out for criminal background. Our residents have to:

  1. Not have violent felonies in the last 10 years, and

  2. Not be a child molester

If they have an eviction in the last 2 years, we make them put down 2 months security deposit instead of just one (plus, of course, first month’s rent). They all have bad credit, so we do not even look at that.

To your continued success,


No, if you have other prospects that you believe would qualify why bother with one you already question yourself.

Being a landlord requires taking every possible step to mitigate your risk through selection of tenants.

It is always better to be selective in choosing a tenant rather than having to evict after the fact. This individual has already proven they have money management issues so why chance making their proven deficiencies your risk when you have other choices. Base your decisions on the facts you see not on what you may hope will happen.

When in doubt regarding any applicant chose the best don’t settle for the first. Good tenants are chosen not molded.

As far as credit reports are concerned I always do a credit search. For an experienced landlord there is a myriad of information in the report of value besides simply the credit score.

For example it’s nice to know what creditors may be stalking your potential applicant for your rent money. All info is of value when choosing between applicants.

Word of caution concerning security deposits- some states LIMIT what you can take for a security deposit- so before charging anything- know the laws.

I would look at the application and not be concerned with a past filing. It is more an issue if they file while they are a tenant, and if they are buying you need to follow collection laws and probably attend the hearing to see if you are included or excluded from the asset list.

I have probably had 5ish people file while I was holding their note and have never had an issue with the process… but one never knows and judges can adjust agreements, toss them out, award property etc… so watch yourself if you ever get the letter that you are a listed creditor.