In Iowa, can a landlord file bankruptcy on a tenants security deposit that has already moved out?

We moved out on November 15. By Dec. 15, we still hadn’t heard anything so we contacted them. They sent us a letter saying that they would give us our deposit by Dec. 31. We waited and had not heard from them. We just got a letter saying they filed bankruptcy and listed us as their creditor? How do we get our money back?

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Posted January 30th, 2010 in Bankruptcy Q And A. Tagged: , , , .

3 comments:

  1. Wildcat:

    I do not think that is legal. All states require the deposit be kept separate from the owner’s personal money. This is not their money and they had no right to spend it. They are to hold it until you move out. Even if the get away with this, you can still sue them for illegal use of your deposit.

    January 30th, 2010 at 2:41 am
  2. MadMan:

    It depends on the state that you live in. For example, in NY, landlords are required to keep deposits separate from there own monies. If this is the case where you live, you might be able to keep what you are owed out of the bankruptcy. However, it sounds like it will be difficult, costly and time consuming to follow up on this. It is up to you to decide if you want to do this.

    January 30th, 2010 at 2:41 am
  3. Alanna:

    I also have issue with landlord. I posted my problems on wish123 and got an excellent advise from an expert. I highly recommend the website!

    January 30th, 2010 at 2:41 am

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