My landlord is in Ch 11 bankruptcy. My deposit is not in a trust. If the Ch 11 fails, how much notice will I get before I have to vacate the property? Will I get my deposit back? I live in California.
i am just about to enter a month to month with landlord who is individual but addendum says property of lease is part of ch. 11 bankruptcy. if i am just living there, and Ch. 11 is rejected or terminated and property taken by bankruptcy court, how would i get my deposit back? deposit is 2800 so I don't want to lose it on a short term lease.
it also says deposit goes to owner, not held in escrow
The property will not be taken by the bankruptcy court, it is most likely security for a loan on the property, if the property is not paid the bank would foreclose on the property, at that time they would most likely want everyone to stay, they would not want to lose all of their rental income as that would reduce the value of the property.
At worst you are at risk for losing your rental deposit, and a month to month lease does not bind you into to much of a time commitment in case you do need to move.
my deposit is 2800 and that is what i want to know about. i would not enter a lease if i could lose that. the property does not have a loan on it.
It sounds like you might be better of not entering into the lease and moving to a new location were you do not have to be concerned about losing your deposit. The landlord is supposed to keep the deposit segregated but this rarely happens, he most like could spend it and not have it available which would put you into a litigation situation which you should try to avoid.
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