Legal Question in Bankruptcy in California
A few years ago, I moved out of a room I was renting and my landlords never returned my security deposit. I won a small claims case against them only to find out they had filed for Ch. 7 bankruptcy. They didn't actually file for bankruptcy until a few months after I had moved out, but they had filed before the small claims ruling took place. I was not listed as a creditor and never filed anything with the bankruptcy court and their bankruptcy case is now closed. At this point, can I go back and collect my money as ruled in the small claims judgement? Or are they protected forever from having to pay me my security deposit back?
2 Answers from Attorneys
The answer depends on whether or not the landlords had assets that were distributed to creditors. If their creditors received a distribution and you lost out because you didn't have time to file a proof of claim, then your judgment is valid. If it was a "no asset" case and the creditors received nothing, then your claim was wiped out and the judgment is invalid.
Hello:
You may want to review the Bankruptcy Court File. It is public record. You may be able to determine what occurred.
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