My Landlord Filed Chapter 13

[sjkurtz]

I live in New Jersey
My Landlord never returned my security deposit.
I filed suit in Superior Court to get my security deposit and am awaiting a court date.
I just got a letter that my landlord sent to the Superior Court.

It reads:

"By the advice of my attorney, I wish to advise the court that I, .....(I really should shout this jerks name from the rooftops but won't sink that low)....., am currently in Chapter 13 Bankruptcy. According to my lawyer's information, no individual can bring a lawsuit against me at this time. Please notify me if this is not correct."

Can he avoid giving me back my deposit through Bankruptcy?

I just found out that the last day to file a claim has passed, making matters worse.

I appreciate any help.

 

[Michael Wechsler]

He cannot discharge your security deposit in bankruptcy. Per law, he is supposed to keep it in a separate account since it is not his to keep and your money at all times. He can use the security on if he needs to take it due to your nonpayment of an item that you were responsible for under your lease. As stated, it was not his to keep and cannot be discharged under bankruptcy -- he never should have used your money.

 

[sjkurtz]

Many thanks for the response.

It turns out that I have been fortunate. He did not fulfill the requirements of his filing and his bankruptcy case was dismissed.

Moreover, he failed to answer the lawsuit that we filed against him for return of the security fault and we are obtaining a judgement.

Again, my thanks!

 

[Michael Wechsler]

Super!!! Great to hear...

 

[bleepjay]

I'm in NC, and my landlord just did the same thing. Trying to include my deposit in her Ch. 13.

Is there any chance I can take a look at your filing as I am about to start mine. Did you get a lawyer or do this yourself?

 

[Thecompdude]

Hello people,
I am in a similar position in WA state. Can any one of you guide me in my case? My landlord has filed for Ch. 7 and included me in his list of creditors for the Security Deposit.

Thanks.

 

[Gail_in_Georgia]

Both these states have similar laws like New Jersey on how landlords are to handle security deposits. In North Carolina, they are to be placed in a bank account separate from that of the landlords personal account. In Washington state they are to be placed in a separate trust.

Neither state allows that a security deposit can be "co-mingled" with the landlords personal funds.

If you wish to sue the landlord, look into doing so through your Small Claims court. Check to see your states financial limits on going through this court which does not require an attorney.

Gail