Claiming rent and security from a landlord who entered Chapter 13 bankruptcy.

[Ailsa]

What is the name of your state (only U.S. law)? Vermont

I rented an apartment in Vt and paid the landlord two months rent plus one month security prior to moving in. When I moved in, I found that a burst water heater had caused mold growth on carpets and the ceiling. After two days in the apartment, I'd become sick. I moved out on the third day and requested full repayment of rent and security. I asked the local housing inspector to view the apartment, he agreed that it was uninhabitable. The landlord didn't respond to correspondence so I filed a Small Claim. He then filed for Ch 13 protection and on this basis, the Small Claims Court dismissed my suit. He did not list me in his Ch13 documents as a creditor, I filed the paperwork to have myself added as a creditor though I'm not included on his 'Chapter 13 plan'.

1. Will the Trustee of this Ch13 case consider my claim valid since it has not been settled in court?
2. If the Trustee offers me partial or no compensation, can I still sue for the balance before or after the Ch13 has been discharged?

Ailsa

 

[racer72]

What is the name of your state (only U.S. law)? Vermont

1. Will the Trustee of this Ch13 case consider my claim valid since it has not been settled in court?
2. If the Trustee offers me partial or no compensation, can I still sue for the balance before or after the Ch13 has been discharged?

Ailsa

1. Possibly, depends many factors.
2. Nope. It's all over at that point. Any further actions on your part would be a violation of federal law. You could face some stiff penalties. All you can do now is wait till the landlords meeting with creditors. You can't do anything till then.

 

[Ailsa]

Can a landlord avoid repaying security to tenants when he claims Chapter 13?

Vt rental statutes offer recourse for tenants regarding return of security and 'habitability' - (Vermont Rental Housing Health Code V111:C, also Vermont Statutes Title 9 Chapter 137, Residential Rental Agreements Section 4461, Security Deposits.) Is the landlord spared from honoring these statutes through the Chapter 13 protections? Proof of claim documents state "deposits towards purchase, lease or rental of property......' are entitled to priority under 11 U.S.C 507(a)(7). Is the Trustee entitled to make their own judgement on these statutes?

Ailsa

 

[bigun]

Here's 507 in it's entireity. Note the 1st sentence-they go in order and rents and leases are #7.

http://doney.net/bkcode/11usc0507.htm

You've done all you can . You filed a proof of claim and the rest really depends on who else is a creditor that may have a higher priority.