Finance Q&A

Bankruptcy in Texas:Some personal prolems

Edwards Finance > Loans

Q. My Landlord just declared bankruptcy in Dallas County, Texas. He claims that my security deposit which he refuses to refund is covered by Texas bankruptcy laws and that I am now an unsecured creditor. I would think that trust funds are outside of the scope of personal bankruptcy. Does anyone know if I am in fact now an unsecured creditor, or do I have other legal remedies at my disposal?

A. The problem isn't "Texas bankruptcy law," but that you were probably never a secured creditor in any case. All bankruptcy law is US, and the courts are pretty nasty about not allowing states to change a debt's status based on whether the debtor is in bankruptcy or not. I'm not a lawyer, but I think you need a quick consult (especially if the amount is significant). Many law schools--possibly including SMU--have free consults or a referral service.

 


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