Legal Question in Bankruptcy in California

I rented a house and i left $1300.00 as a deposit. when i moved out i was expecting to have my $1300.00 that i left for deposit to be returned to me after the house was inspected.

the owner of the house filed bankruptcy and included the $1300.00 that i had left for a deposit for rent on his list.

i submitted a proof of claim that the $1300.00 was not a debt, it was a deposit that i had left with the land lord as a deposit.

i received a discharge of debtor from the court and this is what it said, "it appearing that the debtor is entitled to a discharge. it is ordered: the debtor is granted a discharge under section 727 of the 11, united states code, {the bankruptcy code}

does that mean that the land lord do not have to return the $1300.00 deposited that the court had ordered her to pay me in small claims court before she filed for bankruptcy?

if so how can i appeal the decision because that was a deposit and not a debt.

what can i do to get my deposit returned to me?


Asked on 8/10/10, 9:40 pm

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

You are almost certainly out of luck. The time to deal with this was while the landlord was in bankruptcy. There, you might have filed an objection to the debt owed to you being discharged. When you went to small claims court and obtained a judgment, that reduced the security deposit owed to a debt - a judgment. That is discharged in a chapter 7 bankruptcy unless you, as the creditor, object timely to his receiving a discharge. The first paper you received from the Court telling you he filed bankruptcy advised you that there was a deadline by which you must file an objection to his receiving a discharge. You may not even have grounds to object, depending upon what the judgment determined regarding the retention of the deposit. Your only option at this point is to consult with a good bankruptcy attorney.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence. As required by 11 U.S.C. �528, we must now disclose that, "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Assistance we provide with respect to Debt Relief may involve bankruptcy relief under the Bankruptcy Code."

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Answered on 8/18/10, 4:02 pm


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