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Landlord filed bankruptcy and won't return my security deposit. Can I deduct it from my last month's rent?

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I guess I could just not pay it, but I am concerned about ruining my credit. The deposit is about $1200. If I don't pay my last month's (upcoming) rent, from my view, we'd be even. Help...

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  1. If you do not pay your lat months rent he can turn that into collections as uncollectable debt. Your security deposit is never intended to pay the last months rent. Pay the last months rent and then if there aren't enough damages for him to be able to keep all of the $1200, sue to get it back.


  2. You need to pay, and he needs to return your deposit 30 days (21 in CA) after you move out.   His bankruptcy does not effect this, it is not credit.

    If he sues you for his rent he will win, plus expenses, and the judgment will show up on your credit report.


  3. Rental history does not show up on the three major credit bureau reports.  I would not pay the last month.  You could always explain what happened to the next landlord.  Legally they are supposed to hold your deposit in escrow and not allowed to use that as their personal cash.  The laws vary from state to state.  Google landlord tenant "security deposit" and include your state's abbreviation.  That should direct you to your state's website that handles that stuff.

  4. What a mess.  The court will award you triple the amount of the deposit. Pay $35 at Small Claims Court.  

  5. By law, you have to pay. Under your circumstances, I wouldn't pay. If your landlord filed for bankruptcy, he shouldn't have money/time/resources to take you to small claims. Even if he takes you to small claims, the judge can make him return your deposit or there's a breach of contract because usually he's supposed to return your deposit, provided you left the place in the same condition it was when you moved in (minus normal wear and tear) if there's a contract and it specifies how the deposit money is supposed to be handled. Any rental / real estate agreements for a period of a year or more have to be in writing. Good luck!

  6. did you get a letter from the bankruptcy court stating you are a creditor in the court. Then your are not listed as a creditor in the bk. If so then do not pay as you will never get it back is just my opinion
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