Legal Question in Bankruptcy in California
Landlord Security Deposit Issue
I have case where the Debtor owns a duplex and rents the 2nd unit out.
Amid all his financial troubles, Debtor used the $1100 security deposit
that his tenant gave upon move in in 2006, to pay bills. Beyond being a
major breach of Real Estate/landlord - tenant law, any thoughts on how and where to list
this now non-existent security deposit on the BK petition? As a
liability owed to the tenant? Never dealt with this before, any
opinions are appreciated.
2 Answers from Attorneys
Re: Landlord Security Deposit Issue
I'm unclear by what you mean when you say "I have a case" - are you an attorney? If so, this really isn't an appropriate means of researching a matter for a client. If you are a bankruptcy petition preparer, you should not be providing your clients with any legal advice, including where to list certain types of obligations.
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Re: Landlord Security Deposit Issue
Property he holds for another -- statement of financial affairs -- since it's not his money. Since the money is not yet due back to the tenant as the tenant is still in place, there is no liability, yet. My 2 cents.
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