Legal Question in Bankruptcy in Texas

My question is can a person/company that was a landlord that never returned a security deposit after you filed suit in small claims court report to the court that they filed bankruptcy and included the amount they you won as a debt and is no longer liable to pay the debt? The ex-tenant is not a creditor so how can they be treated as such and included in a bankruptcy for non-return of security deposit?


Asked on 5/26/10, 1:41 pm

1 Answer from Attorneys
Mark Dunn Mark D. Dunn

The short answer to your question is: You're out of luck.

The pleading that was filed in your case was probably entitled "Suggestion of Bankruptcy."

It is almost certain that the ex-tenant WILL be treated as a creditor (in fact, he is, since the landlord owes him money).

Section 507(a)(7) of the Bankruptcy Code indicates that the ex-tenant has a priority claim. If he feels strongly about it, he can file a proof of claim in the bankruptcy court.

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Answered on 5/27/10, 10:57 am


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