Filing for Bankruptcy in Miami Florida – Security Deposit Asset

When you meet with your bankruptcy attorney in South Florida they usually ask you questions regarding your assets and your debts. When you file for bankruptcy, whether it’s a Chapter 7 or a Chapter 13, you must disclose all of your assets on the bankruptcy petition (what is filed in court). Besides some of the most common and basic assets (furniture, cars, bank accounts), sometimes there are things that debtors don’t even think about that are worth money.
One of the most common forgotten assets only applies to debtors who rent rather than own a home. Typically when a debtor signs a lease they are required to pay deposits (in south Florida that typically includes first, last, and security) to the landlord. Your security deposit is considered an asset and you can expect a bankruptcy trustee to ask every debtor who rents whether or not they have a security deposit.
I have never personally seen a trustee request that the debtor or the debtor’s landlord turnover or assign the security deposit to the trustee, but I have seen the trustees questions debtors on whether or not they have a security deposit and on some occasions request the debtor provide a copy of their lease agreement.
If you are thinking of filing for bankruptcy you should seek out an experienced bankruptcy attorney to represent you. If you would like to schedule a free consultation with bankruptcy attorney Ofer Shmucher from Shmucher Law, PL please give our office a call at 305.741.5553 or 954.309.5559.

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