Legal Question in Business Law in Alaska

Re: Our Rights

To begin with, notwithstanding the affidavit, your rights in any property held to secure a debt will be subject to any properly perfected prior liens. If such liens do in fact exist, you should check with the lienholder to find out how much is still owed on the underlying debt, deduct that amount from the value of the property, and decide for yourself whether the remaining equity is enough to compensate you for your damages.

If not, you may have a claim for the difference against the debtor (your ex-tenants) based both on basic landlord-tenant law and on the fraudulent affidavit. It should also be noted that the effect of a prior lien is not necessarily a given, as creation and perfection of a lien on personal property is not always a simple matter.

Also, don't forget that Alaska landlords are required by law to notify ex-tenants within 14 days of the amount and justification for any withheld security deposits.