QUESTION
Will I lose my deposit if I file for bankruptcy?
Asked on Aug 01st, 2011 on Bankruptcy - Georgia
More details to this question:
I plan to file for bankruptcy in the next couple of months, I have already retained an attorney but would like another opinion. I need to break the current lease I am in because of a domestic situation. Will I lose my deposit? Will this effect my bk in anyway?
4 ANSWERS
Bankruptcy Attorney serving Herndon, VA
at
Maureen O'Malley
Update Your Profile
Don't know which deposit you're talking about. You probably signed something with the lawyer, and we usually keep what we've earned. If you leave the lease, and someone else is there that person can pay. But if not paid, the landlord can come after you. Unless you file it in bankruptcy.
Answered on Aug 04th, 2011 at 12:08 PM
You will likely lose your deposit if they take a loss on the rents as "liquidated damages." It should not effect your BK, in fact, you are allowed to reject the lease in the bk.
Answered on Aug 03rd, 2011 at 11:08 AM
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
When you break a lease you lose your security deposit. When you file bankruptcy you must list all deposits with landlords as well as any payment to creditors within the prior90 dyas of filing the bankruptcy. This would apply to landlord deposits that are forfeited.
Answered on Aug 03rd, 2011 at 9:08 AM
Glen Edward Ashman
There is no way any lawyer could answer what happens to the deposit without knowing the size of it, when it was paid, the language of the lease, what other assets you have (which affect your exemptions), etc. These are things your lawyer has that we do not have.
Answered on Aug 03rd, 2011 at 8:31 AM