Landlord Filed for Bankruptcy, After Judgment!

[nemochian]

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

Hello All,

Well, my wife and I took our previous LL's (Defendants) to court (see my previous posting - Landlords are keeping our $1,200 Deposit). It turns out that I was right. Even though our LL's do not own 10 or more units, they still had to abide by the Georgia Landlord/Tenant Law, Section 44-7-33 - which also brings 44-7-34 back into play (for they withheld our SD due to alleged damages).

So, the court determined that the Defendants did not follow the law (i.e. giving us a list of the alleged damages with estimated costs to fix said damages), 44-7-33. The court also determined that the damages the Defendants were claiming were of Normal Wear and Tear. We won the whole way around!!! $1,200.00 + Court Costs + Interest.

The Court handed out the judgment on February 10th, ordering the Defendants to pay us said amount. As of yesterday, March 14th, we had heard nothing from the Defendants.

Today we received a Notice of Chapter 7 Bankruptcy, filed by...guess who! Nowhere on this notice does it list us, but I am sure that they are trying to list their dept to us as an "Asset" - Therefore naming us as a "Creditor" (I, first of all, have a problem with that - for the Deposit is supposed to be held in trust; so it was not theirs to spend, nor did we loan it to them).

My questions are:

1) under Georgia law, can they list us as a "Creditor" - hence listing the owed Deposit as an "Asset".

2) Doesn't the fact that we had a Judgment made by a Court of Law, ordering them to pay us back said moneys (for they did not have the right to keep it), before they declared bankruptcy, exempt us from a Bankruptcy Stay?

3) If we are, for a lack of better words "screwed", will we have to go through all of the bankruptcy channels and attend the Meeting of Creditors - to get our money back?

Thank you for your time and thoughts, everyone! (Sorry for not listing this under a Bankruptcy Thread...but you can see my predicament)

 

[nemochian]

Correction

Sorry, I just realized that I said something wrong.

The fact that the Security Deposit was held due to alleged Damages, 44-7-34 brings 44-7-33 back into play...otherwise 44-7-33 is excluded for those LL's that own less than 10 units, or do not use a management company/agency (I wrote the codes in reverse, in my original post here).

Sorry for any confusion. I just really want to make sure that everyone understands this properly, for there really is a lot of confusion out there - in regard to LL's owning less than 10 units. Everyone seems to think that all the LL has to do, in the case of retaining a SD, is send you the reasoning (via mail) within 30 days. This is not the case when the LL is retaining the Deposit due to Damages. In the case of Damage, the LL is required to follow the guidelines outlined in 44-7-33. Trust me, I have it in writing from a Judge!

Thanks

 

[marcdonovan]

Yes, you are an unsecured creditor just like all of the others. You will receive your share of whatever is left after paying the secured creditors. Welcome to the wonderful world of deadbeat collections. Fun isn't it?

 

[Cvillecpm]

Your judgement is a DEBT not an ASSET and YOU WILL GET NOTHING!!! Depending on which BK they choose - state or federal, they may well keep their property depending on title to the property and your judgement will disappear in the BK.

Enjoy WINNING as that is ALL YOU WILL HAVE!! Landlords all over the world are rejoycing in your small victory!!!

 

[marcdonovan]

Depending on which BK they choose - state or federal

Which state has a bankruptcy process?

YOU WILL GET NOTHING!!! [...] judgement will disappear in the BK.

Depends on the balance sheet doesn't it?

Enjoy WINNING as that is ALL YOU WILL HAVE!! Landlords all over the world are rejoycing in your small victory!!!

Yes we are all self-hi-fiving right now.

 

[Cvillecpm]

Why do you think OJ moved to Florida? BECAUSE IT HAS ONE OF THE B*E*S*T STATE BANKRUPTCY LAWS....debtors can choose state BK law or federal and their BK attorney advised them according to their assets.....state laws are more generous with what debtors are allowed to keep.

Class envy is not attractive even in this political climate!!!

Attending the meeting of creditors is a further waste of your time but do it if you want to as it can be further education. Your deposit is long gone and it probably not even listed in the landlord's filing....Hopefully, you learned a valuable lesson so you should move on.

 

[Ozark_Sophist]

Cvillecpm is one of those landlords who think they know the law, but don't really know anything. He would prefer tenents move on, remain ignorant.

Quote:
Originally Posted by Cvillecpm
Com - "there is no such law in VA. I take 16 hours of VA landlord LAW courses ANNUALLY....You either misunderstood what your landlord said and are reading something into something he said....move on! "

Then why is there a law in Virginia that says

Quote:
"§ 55-248.31. Noncompliance with rental agreement.
C....For purposes of this subsection, any illegal drug activity involving a controlled substance, as used or defined by the Drug Control Act (§ 54.1-3400 et seq.), by the tenant, the tenant’s authorized occupants, or the tenant’s guests or invitees, shall constitute an immediate nonremediable violation for which the landlord may proceed to terminate the tenancy without the necessity of waiting for a conviction of any criminal offense that may arise out of the same actions. "

Op, sounds like you won the good fight, but still may never see your deposit back. They should make it a criminal offence for landlords who fail to follow state law regarding deposits in seperate accounts.

 

[Cvillecpm]

Actually, Cville is a FEMALE who DOES KNOW enough to know there are 2 bankruptcy laws for most states and that no one is going to spend GOVERNMENT time or GOVERNMENT money to assist a tenant get $1,200 from a SINGLE landlord on a criminal charge....just not going to happen. Can't get blood from a turnip since the landlord is GOING BANKRUPT!!!

Again, quoting statutes with NO knowledge is DANGEROUS advice for the OP to follow.

 

[marcdonovan]

Why do you think OJ moved to Florida? BECAUSE IT HAS ONE OF THE B*E*S*T STATE BANKRUPTCY LAWS....debtors can choose state BK law or federal and their BK attorney advised them according to their assets.....state laws are more generous with what debtors are allowed to keep.

There are exemptions that vary by state laws, which is why OJ and others prefer to live in Florida, but there is no way to file bankruptcy on the state level in any state. If there is, please point to a single statute in any of the 50 that provides for that. There is only Federal filing, and nothing else.

OP, if you are not listed as a defendant, the bankruptcy does not apply to your judgment. You probably lucked out due to a clerical error. They have you on the mailing list, but they forgot to name you as a defendant. Stay mum until the case is released and you will be the only one left owing and no way for them to do-over.

You will have to collect however and this is not simple. You will need to record a FiFa with the county recorder where the debtor owns real estate. You can also file a garnishment in the county where the debtor gets his paycheck. You can file a garnishment against a bank account if you know the account number (look at the back of your canceled rent checks). You can also file interrogatories which means they must provide a list of assets to you within 30 days. Expect all kinds of shuffling when you send that - money goes under the mattress. But you must wait for the bankruptcy to finish in order to start any of this and there is a very good chance they will discover the error and you will have to share the remains with the rest of the creditors.

 

[marcdonovan]

[...]there are 2 bankruptcy laws for most states and that no one is going to spend GOVERNMENT time or GOVERNMENT money to assist a tenant get $1,200 from a SINGLE landlord on a criminal charge

Please show us one example of this two-law bankruptcy system.

A bankruptcy creditor that is owed $2 has the same rights as one who is owed $2 million. They just get a smaller share of the assets.

Where did anyone mention any criminal charges here?

 

[Ozark_Sophist]

Again, quoting statutes with NO knowledge is DANGEROUS advice for the OP to follow.

You were absolutely wrong on that other thread and once it was proved you knew nothing about landlord tenant laws, you left.

Give advice if you have correct, legal advice.

 

[Cvillecpm]

OJ moved to Florida BECAUSE the Goldman family got a bizillion dollar judgement and wanted his NFL $50,000/mo retirement income...he moved BEFORE he filed because FL laws EXEMPTED them from getting at that money OR making him sell/loose his new home....Florida is a BK HAVEN!!!

You guys are TOO, TOO EASY!!!...google Ga Bankruptcy laws....see the DIFFERENT exemptions available to debtors ACCORDING TO THEIR STATE OR they can take the FEDERAL exemptions if state laws are not as generous.....

Federal supplemental exemptions can be used in conjunction with your Georgia exemptions and can be viewed here.

Also see Georgia bankruptcy forms.

ASSET
EXEMPTION DESCRIPTION
LAW SECTION
(Official Code of Georgia Annotated)

HOMESTEAD
Real or personal property, including co-op, used as residence to $5,000; unused portion of homestead may be applied to any property
44-13-100(a)(1)

INSURANCE
Annuity and endowment contract benefits
33-28-7

Disability or health benefits to $250 per month
33-29-15

Fraternal benefit society benefits
33-15-20

Group insurance
33-30-10

Industrial life insurance if policy owned by someone you depend on, needed for support
33-26-5

Life insurance proceeds if policy owned by someone you depended on, needed for support
44-13-100(a)(11)(C)

Unmatured life insurance contract
44-13-100(a)(8)

Unmatured life insurance dividends, interest, loan value or cash value to $2,000 if beneficiary is you or someone you depend on
44-13-100(a)(9)

MISC.
Alimony, child support needed for support
44-13-100(a)(2)(D)

PENSIONS
Employees of non-profit corporations
44-13-100(a)(2.1)(B)

ERISA-qualified benefits
18-4-22

Public employees
44-13-100(a)(2.1)(A),

47-2-332

Other pensions needed for support
18-4-22,

44-13-100 (a)(2)(E),

44-13-100(a)(2.1)(C)

PERSONAL PROPERTY
Animals, crops, clothing, appliances, books, furnishings, household goods, musical instruments to $200 per item, $3,500 total
44-13-100(a)(4)

Burial plot, in lieu of homestead
44-13-100(a)(1)

Health aids
44-13-100(a)(10)

Jewelry to $500
44-13-100(a)(5)

Lost future earnings needed for support
44-13-100(a)(11)(E)

Motor vehicles to $1,000
44-13-100(a)(3)

Personal injury recoveries to $7,500
44-13-100(a)(11)(C)

Wrongful death recoveries needed for support
44-13-100(a)(11)(B)

PUBLIC BENEFITS
Aid to blind
49-4-58

Aid to disabled
49-4-84

Crime victims’ compensation
44-13-100(a)(11)(A)

Local public assistance
44-13-100(a)(2)(A)

Old age assistance
49-4-35

Social security
44-13-100(a)(2)(A)

Unemployment compensation
44-13-100(a)(2)(A)

Veterans’ benefits
44-13-100(a)(2)(B)

Workers’ compensation
34-9-84

TOOLS OF TRADE
Implements, books and tool of trade to $500
44-13-100(a)(7)

WAGES
Minimum 75% of earned but unpaid wages for private and federal workers; bankruptcy judge may authorize more for low-income debtors
18-4-20, 18-4-21

WILD CARD
$400 of any property
44-13-100(a)(6)


Unused portion of homestead exemption, of any property
44-13-100(a)(6)

 

[marcdonovan]

Cville, these are the exemptions that I mentioned. Please post a link that shows that someone can file with the state or with the fed. This is what you have claimed.

 

[Cvillecpm]

Here you go.....Depending on which BK (exemptions) they choose - state or federal, they may well keep their property depending on title to the property and your judgement will disappear in the BK.

The state v federal exemptions are allowed in the FEDERAL statutes * hence there being FEDERAL courts IN the states and not only in DC * I' sorry you could not understand this important feature in my original post.

Again, OP needs to know the EXEMPTIONS that their landlord used in filing their BK

 

[TigerD]

OP, if you are not listed as a defendant, the bankruptcy does not apply to your judgment. You probably lucked out due to a clerical error. They have you on the mailing list, but they forgot to name you as a defendant. Stay mum until the case is released and you will be the only one left owing and no way for them to do-over.

OP -- You need to talk to an attorney about what you can an cannot do. Following marcs advice is a good way to lose and possibly face suit violating the stay after it is over.

DC