Potential tenant considering bankruptcy in Baltimore Maryland

[Kim Coleman]

Hello Bigger Pockets community!

So I'm in the process of vetting tenants for my Baltimore rental.  Here's the scenario - military applicant with 6x rent in verifiable income, no evictions, no criminal record, decent credit with high balances and a 2 late payments in the last year, nothing currently late, waiting on previous landlord  rental history verification.  There is a case from tenant holdover court from 2012 for current residence, but case was dismissed.  No fillings for late payment of rent prior to or after that filing.   

Here's what's concerning me: This applicant wrote a letter to explain late payments on their credit report and stated in the letter they are going through a divorce from a person who was chronically unemployed which created the need to live off credit cards and this person is not paying their debts on the joint accounts.  Fine.  But then the letter says these debts may cause the applicant to loose their security clearance (military) and therefore the applicant has hired an attorney to file bankruptcy.  The bankruptcy appears to me as a major red flag.  Should the tenant move in and stop paying me, I would become a creditor and could get discharged (or so I understand).  I'm not familiar with Maryland or Baltimore laws when a tenant files for bankruptcy.  HELP! Would you rent to this person? What is the worst case scenario? What other questions should I be asking? 

Thanks in advance for all those in this community who help each other out all the time. I did some searches and gained a little info but didn't see anything particular to Baltimore or Maryland. I hope this helps someone else out there one day too.