Security Deposit withheld, Landlord claims Chap 7 bankruptcy

[redfaction37]

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

In October, I learned the house I was renting was going to be foreclosed on 11/30. In Missouri, foreclosures terminate the lease agreement between landlord and tenant. After finally receiving notice that the house was actually foreclosed on, I contacted my landlord to ask him when I could expect to receive my security deposit back (Missouri law provides 30 days for the landlord to return the security deposit). He emailed me back stating that he was "in Chapter 7 bankruptcy and released from all contracts and related debts or financial obligations...I regret to inform you that I don't have the security deposit to give you." After doing some additional research, I learned that he was discharged from his obligations under Chapter 7 on 8/30. Our lease did not terminate until 11/30. Technically, I am not owed the security deposit until 12/30. Can I still file claim against my landlord for a wrongfully withheld security deposit? If I did, would he be protected by his Chapter 7 discharge?

Thanks for any advice!

 

[FarmerJ]

Did you ever get a notice regarding the LLs 7 ? it would have been for a creditors meeting back when they were in the early stages of filing ? Not sure that it would work but if your willing to chance it in small claims court then ask the court to require former LL to bring to court evidence , copy of his original filing where your deposit should be listed and creditor meeting notice copy that would have been sent to you & that they have been or to have to pay it. If the LL didnt list you or was bluffing you and hasnt filed yet likely you will be included when they do file and you should get creditors meeting notice where your free to voice your opposition, chap 7 is not as easy to get as it used to be. ( see if you moved in after the chapter 7 was filed then from what I remember when I had a 13 many years ago was new debts that occur after a filiing are exempt from BK protection) so if you moved in after the LL filed then your dep funds should be automatically exempted and if you were listed then the former LL will have a chance to prove it.

 

[redfaction37]

Thanks for the reply.

I'm going to check the actual court file on Thursday to see if my security deposit was listed, but I never received any notice for a creditor's meeting. Furthermore, his debt was discharged before our lease terminated and before he owed us the security deposit.

It is quite possible that he filed bankruptcy before we entered into our lease. If his debt was discharged and we entered into a lease after he filed for bankruptcy, would there be a legal claim? (the problem would then be what money does he have available to pay the security deposit)

 

[FarmerJ]

If you moved in and gave a deposit AFTER former LL filed for BK it is not listed it would be a debt out side of bks protection, I remember that so clearly being told any thing new I take on after my plan is approved by the court I was stuck with it if it became un manageable. SO once you know when it was filed and if by chance you were not included then by all means sue for it and dont hesitate if the former LL claims it was in a BK in court to ask the court for him to prove it. Not sure whom you would be able to complain to if a BK trustee who was doing a creditors meeting didnt send to you notice of it but that too may be worth looking into if that happened too.