Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
If the landlord is going to turn over the property to the lender, your daughter will have to contact it about continuing the rental agreement with the lender/new owner. Also, her deposit should be turned over to the lender/new owner as well. This money is not part of the person's bankruptcy because it is not her money - it's your daughter's.
Bear in mind that the lender/new owner does not have to assume the contract and can make your daughter vacate the property. The contract is cancelled by the landlord's filing of bankruptcy. Even if this occurs, she should be able to recover her deposit less any expenses for reasonable repair.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).