Legal Question in Bankruptcy in Pennsylvania
Security Deposit & Bankruptcy
My family rented a vacation home for a week in January. We had placed a $400 security deposit in addition to the payment. The security deposit was never returned. When we finally got in touch with the man we rented from, he said that he has filed for bankruptcy and cannot return the deposit. He referred us to his lawyer. His lawyer said we are not getting our money back. What do we do? (I live in NJ, the renter lives in NY, the house was in PA)
1 Answer from Attorneys
Re: Security Deposit & Bankruptcy
It sounds like you come under the category of a priority claim of up to $2,425 of deposits toward purchase, lease, or rental of property or services for personal, family, or household use � 11 U.S.C. �507(a)(7). You will need to know the Debtor's name and case number (plus in which bankruptcy court the case is filed), then you can file a Proof of Claim with the court. If the case is filed in U.S. Bankruptcy Court for the Southern District of New York, for example, the website for information is http://www.nysb.uscourts.gov/. If another court, just change the "nys" part of the URL to match up. You can download a Proof of Claim form at http://www.uscourts.gov/rules/BK_Forms_Pending_2008/B_010_1208v4.pdf. The box to check for a priority claim is on the right side of the form.
Have you asked whether the Debtor will just go through with the rental? Obviously, I wouldn't pay more money in advance.