we paid $3500. for rental property, the owner has filed bankruptcy & refuses to return our money HELP?
June 4, 2010 
8 Comments
molly p asked:
refuses to return our money, can anyone help us in what direction or our alternatives are?? PLEASE HELP
refuses to return our money, can anyone help us in what direction or our alternatives are?? PLEASE HELP
If he doesn’t have it, he doesn’t have it. You could join the list of creditors and hope to get some of it back. If he’s filed for bankruptcy, you can get in on the case.
I am not a lawyer, but if the $3500 is for rent that you have already used…say for 2008…you have no recourse. You can’t get a refund for rent that you paid for a place you lived in just bc they file. Now, if you paid ahead and you won’t be living there, you should be entitled to it back if you are being forced to leave. Consult a loawyer. If they won’t give it back to you, you will probably have to sue. but if they are filing bankrupcy, you might not see it back.
Theres not much you can do at all, the amount of time it takes to try to get the mney back you would have earned the money back and the money it would take with a lawyer would not be worth it
Cook County, Chicago area, allows those living in bankrupt landlord’s property to stay for several months. This way they get their money’s worth. Maybe your area does the same. Going after the person in court is a problem. You are one of many who would like money from that bankrupt person.
In contrary to the statement above, an advance purchase is not loan by any stretch. If you paid for a good or service that is not delivered and your money is not returned, that is fraud and the owner could go to prison for it. You might consider hiring a lawyer. Because you are a victim of the crime of fraud, you will have access to assets lenders won’t such as liquidation of the individuals only home or only means of transportation, tax returns, and even direct payments from the owner or signing employees next employer.
Most attorneys will give you one consultation for free then charge after that. During the first meeting, ask if you should share the fact that you know that information with the property owner.
You don’t have to take a number and get in line. Nothing about advance payment for a purchase can ever be construed as a loan.
File and claim the return of $3,500 with the bankruptcy court immediately. Since he has the rental property, there could be enough assets left for you to receive the security deposit. Or if you are allowed, stay in your unit until your security deposit exhausts in place of paying rents.
Unless that was security deposit, then you are not entitled to any money back. Even in foreclosure, you are required to pay rent in full until the day you move out.
I think we need a little more info here.
you can try to hire a lawyer and add your claim to the list but it isn’t likely that you’ll get anything since you’ll be the last in line and he doesn’t have anything to give in the first place. you can continue to live in your rental and take advantage of the space that you already paid for. (rent payments are in advance and not necessarily refundable…at best you can hope for a proration but unless it’s in the contract it isn’t guaranteed.)