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  1. #1

    Default My Landlord Filed for Chapter 7, What Can I Do

    My question involves bankruptcy in the state of: California

    I recently received notice that my landlord is filing for Chapter 7 Bankruptcy. I then received a second notice entitled Notice of Hearing on Motion to Abandon Assets or in the alternative operate the business of the Debtor. I called my landlord once I received the first notice. She stated that they were going through a consolidation and need to file in order to do that. She assured me that it was business as usual and that my security deposit and pet deposit were fine.
    In speaking with my neighbor, he states that this is bad news and even though we received a notice on which properties were involved(ours wasn't listed) he says that we are still on the paperwork and that is why we are receiving notices because we are listed as creditors. My questions is what do I do.. Do I move out? Is my deposit going to be there? and what is my recourse against my landlord if I found out they were lying?

  2. #2
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    Default Re: My Landlord Filed for Chapter 7, What Can I Do

    You can make a claim for your security deposit with the bankruptcy court. California law gives priority to security deposits in bankruptcy.

  3. #3
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    Default Re: My Landlord Filed for Chapter 7, What Can I Do

    Quote Quoting down and out
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    My questions is what do I do.. Do I move out? Is my deposit going to be there? and what is my recourse against my landlord if I found out they were lying?
    you do not move until the courts tell you to move. Moving sooner would jeopardize your deposit as you would be breaking your lease.

    and lying about what?

  4. #4

    Default Re: My Landlord Filed for Chapter 7, What Can I Do

    UPDATE: I recently received a claim form from the attorney. Now my question is What am I legally able to ask for(both deposits pet and security)? Should I be moving? I have called the landlord again to ask the same. I have not received any call back at this time.. Any advice would be appreciated.

  5. #5
    Join Date
    Jan 2006
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    Default Re: My Landlord Filed for Chapter 7, What Can I Do

    Until the landlord or the bank evicts you, you are still bound by your lease. Bankruptcies can take a couple months or a lot longer, depending on the situation and the actions taken to abide by the courts directives.

    Not knowing anything about your LL's BK, LL could even end up retaining the building you live within. If so, nothing will have changed with you other than your deposits being in jeopardy.

  6. #6

    Default Re: My Landlord Filed for Chapter 7, What Can I Do

    What should I do with the claim form? Should I ask for both of my deposits(security and pet)? Can I ask for moving fees?
    Once again any advice is appreciated.

  7. #7
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    Default Re: My Landlord Filed for Chapter 7, What Can I Do

    You have a claim for your security deposit. You may have a claim for your pet deposit if it's refundable. You haven't moved, and have not yet stated any legal basis to abandon your lease early, so you have no moving fees to claim.

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