Security Deposit return to bankrupt tenants?
Our NIGHTMARE tenants finally moved out. They owed us over $15,000 in back rent and fees and then filed bankruptcy. (This is the 3rd time they've done this... one major reason we fired our Property Manager. Seriously, did he even do a background check??)
They are mean and aggressive and threatening. Now they've sent us a demand for their security deposit back. They said it's part of their "bankruptcy estate". I don't know much about bankruptcy law. I know the deposit needs to be returned within 21 days per Idaho code.
Is there any way we can keep this deposit to offset a tiny bit of the mountain they owe us? Can we remove some of the deposit for the MULTIPLE stains their pets left on our brand new carpet? Or the scratches in the wall? Paint peeled off everywhere they'd put up a Command strip?
Most Popular Reply
Send them a letter with deductions. Ideally the damage deductions take the whole amount, but also include the $15,000 in rent owed. Something like this:
$2000 deposit
-$2175 damages
-$15,000 unpaid rent
=$15,175 owed
If the courts think you need to return the money or dispute wish to discharge some of the debt, that is for them to state. I don't think they can take the deposit and I sure would not send it to them. They are scammers.