secrurity deposit

[fruitloops66]

our landlord has filed chapter 7 bankruptcy on 10/31/00 she rented us her house on 11/1/00 the house is now forclosed on and we are trying to get our secrurity deposit of $1400.00 back from the landlord. is she obligated to return our deposit ?

 

[dj1]

are you still living in the house?

if not why didnt you sue the security in exchange for the rent/

 

[LL]

If the obligation to return security is a debt listed in the bankruptcy, then you cannot get it returned during the bankruptcy proceedings, and the debt will be discharged along with other debts in the bankruptcy.

You can put in a claim just like any other creditor and hope that there is some money that can be split up.

In many states, there is a statute saying that the tenant has a prior claim on security deposit, above other creditors, I don't know how to use that in a bankruptcy.

 

[dj1]

You might check your state for an "Unjust enrichment" law.

Here in NYC tenants have sucessfully used that to get their security back,or to get the security used in exchange for the rent... because unless the landlord agrees to use the secuirty for the last months rent, then he still can evict you,for not paying the rent, and if the debt is listed in the bankruptcy filing.it would be discharged

So The Landlord is being "Unjustly enriched" by stiffing the tenants of the last month and the security deposit...

The landlord should have to reaffirm the debt, and then he would have to pay you the money after the bankruptcy is final, becuase he would not be able to discharge it in bankruptcy, You can file a claim, and ask the bankruptcy judge to dismiss his bankruptcy UNLESS he re-affirms what he owes you.

[Edited by dj1 on 03-03-2001 at 11:27 PM]