Can You File Bankruptcy While Renting?

Filing For Bankruptcy As a Renter

When financial instability strikes, many individuals often wonder, “Can you file bankruptcy while renting?”. This question underscores a significant concern for people who are in debt but are also tenants. In this article, we will unravel the complexities of filing bankruptcy while renting and answer some of the commonly asked questions regarding this topic.

Impact on Current Lease

A primary concern for individuals considering bankruptcy is how it will affect their current rental agreement. In most cases, filing bankruptcy or making a consumer proposal does not directly impact your existing lease, provided you are up-to-date with your rent payments. Consequently, if there are no outstanding debts to your landlord, there’s usually no need for the trustee to inform them of your bankruptcy filing.

Breaking Your Lease

Some individuals might wish to break their lease after filing bankruptcy. In such cases, it’s essential to understand that bankruptcy deals comprehensively with all debts, current and future, deriving from activities prior to filing. If you signed your lease agreement before filing, any damages resulting from non-payment of rent or breaching your lease contract can be discharged.

Finding a New Place to Rent

Bankruptcy undoubtedly has a negative impact on your credit rating, which could influence a landlord’s decision to accept your rental application. Nevertheless, many individuals who file bankruptcy or make a consumer proposal are able to find rental accommodations. Landlords, like other creditors, are primarily concerned about receiving payments. Hence, while a bad credit rating might raise concerns, it does not automatically disqualify you from renting a property.

Owing Money to Previous Landlords

Owing money to a previous landlord is treated the same as owing money to other creditors. Therefore, such debt can also be discharged when you file bankruptcy.


Filing bankruptcy while renting is not only possible but in many cases, it can provide renters with the financial relief they need. It’s always advised to consult with a bankruptcy expert to understand your specific situation and the potential implications of filing bankruptcy while renting.

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