What to do if my landlord filed bankruptcy and was holding my deposit privately not in escrow?

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What to do if my landlord filed bankruptcy and was holding my deposit privately not in escrow?

What recourse do I have? From what I’ve read my landlord is not liable for this deposit to be refunded. Am I just going to have to accept it’s gone and keep paying rent? I have little faith they will ever repay me this amount. Honestly I believe they were planning on filing bankruptcy before I started renting but have no proof. My landlord is licensed real estate agent. I’m unsure if that has any effect on their obligations or on my recourse.

Asked on August 13, 2012 under Bankruptcy Law, Arizona

Answers:

Anne Brady / Law Office of Anne Brady

Answered 8 years ago | Contributor

For your landlord to sweep your deposit into his bankruptcy, he would have had to have listed you as a creditor in the bankruptcy, and you should be receiving documents from the bankruptcy court about submitting a creditor claim.  If you are not, then he did not list you as a creditor, in which case that debt will not be erased in the bankruptcy.  If it is not, then he will owe you that deposit when you move out.


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