Legal Question in Landlord & Tenant Law in California
Can my previous landlord withhold my security deposit because they have filed for bankruptcy? If my previous landlord has filed for bankruptcy does that even affect me (previous tenant)? Or, is the bankruptcy just between my previous landlord and the creditors that they owe a debt to.
1 Answer from Attorneys
By previous landlord, I assume you mean because you moved out, not because the property was sold and you are still there. If that is not correct, let me know, because the answer would be totally different if the property changed hands and you are still there. If you moved out while your landlord was in bankruptcy, or the landlord filed after you moved out without returning your deposit, YOU are a creditor along with all the rest. The landlord does not control the deposit anymore. It is under the control of the bankruptcy trustee appointed to the case. I am not a bankruptcy expert, but I believe you would be a priority creditor, but if it is a no-asset case, that may not matter. In any case, you must work through the bankruptcy case to try to recover your deposit.