top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Return of security deposit

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Return of security deposit

    We filed a CH 7 bk in June of this year and listed our landlord as a creditor since we had a lease that we knew we couldn't continue in after the BK. We advertised the house and showed it to many people, answered questions, fielded phone calls and found them a renter who qualified through their application process and according to them moved in the day we moved out.

    We had a security deposit on hand with the management company equal to one months rent and due to some other issues with the management company we witheld our last months rent and figured they could use the security deposit towards the last months rent and whatever was left for cleaning if needed. They only kept about 1/2. Basically they have about $200 of real charges listed, out of an $1100 deposit. If we had to go to court I could disprove darn near everything that she tried to charge us for. I'm tired of dealing with her and I just really want her to go away. I am also not sure what we're supposed to do with this check. We have an agreement on our current place that whatever (if anything) we were refunded from the old place was supposed to go towards the new place so I know I have to write this new guy a check for this $560, but I don't know if in the end I have to turn over $560 to the Trustee or what. I didn't claim it as exempt on my schedules because #1 we didn't expect to get a dime back, and #2 I couldn't find an exemption for it. Obviously I don't want to cash the check and get in trouble with the bankruptcy court, nor do I want to 'accept' the check and charges by cashing the check because if she sues us of course I'll dispute most of the items she has listed on the statement. However, if I need to amend and figure out a way to exempt it I need to get it done since we're supposed to be discharged around Sept 10th.

    What I'm wondering is, why wouldn't they keep the rest towards the rent? What they refunded us would have about covered what was unpaid in rent. Also does anyone know if they can sue us? What we were told by an attorney we consulted about the lease was that no they can't because it was a lease, which was signed before filing and that they basically turn into an unsecured creditor after the house is surrendered. Any thoughts?

    #2
    Hello justfiveofus,

    Believe the attorney. All pre-filing rent issues go away in the BK

    Who are you worried about sueing you?

    Management company has charges for $200 and kept $560 You can sue them, not the other way around

    Landlord can't sue, BK prevents that.

    Only thing I can think of is post-filing rent owed. But even this would be questionable b/c the lease is no longer valid.

    Since you rec'd the refund post-filing and are using it for a legit housing expense, it should not be a problem.

    Tom in Colo
    Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

    Comment


      #3
      Hi, we were just concerned that they (management company) could sue us for the partial months rent that they didn't withhold from the security deposit, which yes was post filing.

      Comment


        #4
        Just another quick thing to pick your brain about. Should I go back and exempt that deposit? I didn't do it originally because we didn't plan on getting anything back any way. It's only 560 bucks (that we got back), and since our debt is around 100K it's not like it'd even be a drop in the bucket. Originally, I didn't think that we could use the homestead exemption (we used Oregon exemptions) for a rental deposit but upon further research it looks like the Oregon courts allow security deposit to be exempted under the homestead exemption.

        Also, if I have no equity in something (say my car) I don't need to put an exemption on it correct?

        Thanks again!

        Comment


          #5
          no equity = nothing to exempt

          Hi again justfiveofus,

          Yup: no equity = nothing to exempt

          Forget about the management company. They already gave you the $$ and it would cost them easily twice that amount to try and get it back.

          I assume you have already had your 341 meeting and are awaiting discharge. To go back and exempt the amount you would have to file amendments, pay filing fees, it would cost $$ and is probably more hassle than it is worth. It is post-filing, not planned, not fraudulent, small potatoes, let sleeping dogs lie.

          Tom in Colo
          Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

          Comment

          bottom Ad Widget

          Collapse
          Working...
          X