My question involves bankruptcy in the state of: California
I recently received a Notice of Chapter 7 Bankruptcy regarding my former landlord. Apparently I received this notice because they still owe me $1,600 of my $2,600 security deposit.
To summarize, we were renting a house from them before they went into foreclosure. We moved just before the bank took over the property, so that we wouldn't be in a position of having no place to live and limited time to find one - we couldn't take that stress on with our 3kids. Our landlord owed us a $2,600 security deposit, of which we finally received $1,000 just before receiving the bankruptcy notice.
This doesn't seem fair, as we are not creditors. We didn't loan them this money - we paid it as a security deposit 3.5 years ago when we moved into the house. Can we be treated as a creditor in this situation and what should we be doing to protect our rights to this money? Have we lost it now that they have filed bankruptcy?
Thanks for any help you can give!