Will I lose my deposit if I file for bankruptcy? 11 Answers as of July 09, 2013I 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?
Law Office of Maureen O' Malley | Maureen O'Malley
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.
Answer Applies to: Virginia
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
You can certainly retain another attorney for a different opinion especially considering such an important decision. I am not sure what you have paid you attorney already but generally if you go off and get another one then he should only be reasonably compensated for the time put in your case. You will have to read the fee agreement with the attorney to see if these terms are spelled out. With respect to the lease, you will most likely lose the deposit in part or all of it. I would have a discussion with the landlord about your situation and see if anything can be done. Perhaps, you can assist him in finding a new tenant which will lessen the blow to his pocket. Without knowing any further details I dont see any significant effect to your potential bk filing.
Answer Applies to: Massachusetts
Ryan Legal Services, Inc. | Kevin Ryan
You can claim an exemption on the deposit on Schedule C. In the Cleveland Division of the United States Bankruptcy Court, I have never had a case where a Trustee pursued a security deposit. If it is under $1,000.00 it should not be a problem. I urge you to discuss the issue with an attorney who handles bankruptcy matters asap.
Answer Applies to: Ohio
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
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.
Answer Applies to: California
Ashman Law Office | 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.
Answer Applies to: Georgia