What are my options if my landlord is filing a chapter 13 bankruptcy? 8 Answers as of August 17, 2011

Landlord is filing chapter 13 what are my options? Can I get out of lease? She is holding the security deposit and last month rent.

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Law Office of Jared Altman
Law Office of Jared Altman | Jared Altman
No. You cannot get out of the lease because the landlord filed for bankruptcy. You may also never get your security back. You are a creditor of bankrupt's "estate",
Answer Applies to: New York
Replied: 8/7/2011
The Coyle Law Office
The Coyle Law Office | T. Andrew Coyle
Your landlord filing for bankruptcy probably does not allow you to break your lease; however, if you have received notice from the bankruptcy court, you will want to review the notice to see if you need to file a claim for your security deposit or to verify that your landlord is holding that.
Answer Applies to: Illinois
Replied: 8/5/2011
Palumbo and Kosofsky
Palumbo and Kosofsky | Michael Palumbo
You need to contact the bankruptcy court
Answer Applies to: New York
Replied: 8/5/2011
Frances R. Johnson
Frances R. Johnson | Frances R. Johnson
If you're not having to vacate the property as a result, I'm not sure I'm understanding why you want to get out of the lease. The first place to look for what your potential options are is the lease; that typically will have language about what may legally occur in the event the property passes to someone else. Without knowing what the language of the lease provides, and not knowing the reason for why you're wanting to terminate the lease, I cannot answer whether it is permissible for your landlord to attempt to keep the security deposit.
Answer Applies to: Colorado
Replied: 8/5/2011
Law Office of Kathryn L. Hudson
Law Office of Kathryn L. Hudson | Kathryn L. Hudson
As long as your landlord is i legal possession of the property he is free to lease it and collect the lease payments. If the property is in foreclosure you might want some assurance that the property will not be seized during the term of your lease. Chapter 13 is the preferred bankruptcy when someone is trying to save their property as late payments and penalties can often be paid in the bankruptcy.
Answer Applies to: Arkansas
Replied: 8/5/2011
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