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Ex-landlady went bankrupt and won't return security deposit... How do I get it back?


May 15: I told her I was moving out in June.
May 18: Rent was due, but I figured most places use your security deposit for your last month's rent, so I didn't pay.
May 20: I get this in an email from her:
"Also, I did expect to get a check for your living expenses here on May 18th. Traditionally, when you leave ... you leave me a forwarding address and I would send your security less any damages (which I do not expect, of course - you have been great). I have always returned security deposits, but it does insure that the place is left in a nice condition."
May 21: I pay the rent.
June 18: I move out, leaving my address.
About a week and a half later, I email her a couple times about the security. Then I start calling. First every few days, then every day. Then today, I get this email: "Filing for Bankruptcy. My attorney will be in touch. He asked me to tell you to cease your phone calling."

What do I do? Will I ever get my deposit back?

Sadly that is what bankruptcy is, screwing others out of their money.

I am sorry about it, but you will not be receiving your money.

You should get a notice from the U.S. Bankruptcy Court. You can file file a "proof of claim." If you are not listed on the bankruptcy petition schedule of liabilities her debt is not discharged under the pre-2005 rules. You have to notify your creditors when you file a bankruptcy petition if that debt is to be discharged.

You need to find out who her lawyer is and contact him, for a couple of reasons first to find out if the bankruptcy is for real and 2 nd to be put on a list of debtors due, if it is true.Unfortunately for you if it is true(her filing bankruptcy) you will have to sue her in court for the deposit.You probably will never see that money.You really should have stuck with your don't pay the rent thought, in this case anyway.I would email her and keep a copy asking for her attorney's name, address,phone number and her case number.By law she does not have to give you the case number but she may not know this.If you have that number you can keep track of whats happening with her case.

Kiss your deposit goodbye most likely. I would not believe her about the bankruptcy though. File a small claims suit immediately to protect your deposit. It shows your claim to your deposit money. If you beat her to the courthouse to file, you will not have to go through bankruptcy court to get your money. You can also threaten her with criminal fraud charges and see if that works, but DO NOT put it in writing or email. Limit any phone calls to her to no more than one per week, preferably on the same day of the week to ask for your deposit back. Do not call before 8AM or after 8 PM. Keep a log of your calls to her. Do not stop calling unless she gets a court order or you are contacted by the police. Calling is legal. That is not harassment, that is collection tactics.

If all else fails, consider contacting one of the TV court shows like Judge Judy or People's Court. They love crazy landlord cases. Even if your LL does not have money to pay for your deposit, if you win, the court show will pay you anyway. Remember to ask for interest on your deposit when you file. In most states you can tack on 10% a year, but no more than that. Good luck.

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