Security Deposit

[tknj99]

Hi all,
In alittle dilemma. Attorney advised me not to collect any more rent and I am no longer doing that and the 2 properties (1 actually bounced a check on me anyways) - The second tenant is a tax lawyer and wanted to get his security deposit back. I told him that im keeping it as a paid rental payment. And when he started talking about how its for damages etc, I told him, OK then pay me in July and i'll give it right back to you. He finally realized that he'll be living there for free and wants to try to do a short-sale with the bank. He now, wants me to sign an agreement that im keeping his security deposit in lieue of not collecting any rent. Im alittle worried about this. Do you think that signing an agreement like this could cause an issue when the trustee reviews the case? If you dont collect rent yet have a valid lease, how do u explain the not collecting rent part - do u have to tell the trustee that they stopped paying or can u say that you didnt want to have extra income for the means test? (im sure the latter prob isnt something you'd wanna say to the trustee though)

thx for the help.

[Amy26]

I'm in a similar situation. I am surrendering my property but I have tenants in it currently. I was allowed to take their rent for June but past my file date, I'm no longer allowed to collect their rent. My lawyer also told me to tell them they can live there for free and forego their security deposit. I am going to see them this weekend to give them the bad news/good news. They had already agreed via email to vacate the property early (they had a 2 year lease and got them to agree to leave in January of 2010).

As far as the trustee... my lawyer did not mention having to disclose any of that information. I'm not really sure the trustee gives a crap about my renters anyways? I did not have to provide a lease or anything, I think it just lists on my petition that I collected 5,000 in rent with them this year.

Sorry I can't give you a more official answer but my lawyer is all about saying "don't worry about it".

[tknj99]

Thx for replying Amy26,
So you were collecting rent up until filing.. did that cause any issue with the means test? With my income i am already 7k over median..
I hear ya about the lawyer part - my lawyer tries to get me off the phone as soon as i start talking to him.. im lucky to be able to have a 1min conversation
Are you in Florida as well?

[Amy26]

No, I did not have to do the means test as I had no income at all since October of last year and I just found a job in April. I think my income was calc'd at like 30k and the virginia median income is 65k for 2 people. The rent also did not cover the mortgage... my mortgage is almost 2k a month and the renters were only paying me 1k ... so... to me anyways, not really income.

I am in Virginia.