phone icon860.443.9662

CT Eviction Lawyer – You cannot wash away judgments for failure to return security deposits with a bankruptcy…

In the November, 2012 US Bankruptcy case In re: Anthony Hall, the judge decided that a landlord filing for bankruptcy could not discharge the debt of an unreturned security deposit. The court noted that a landlord holding a security deposit pursuant to Conn. Gen. State. 47-21 does so in a fiduciary capacity and as such, that debt cannot be discharged under the bankruptcy codes.

The specific circumstances of these case were that the landlord admitted to the court that he had withdrew the security deposit prior to the termination of the tenancy; and had used those funds for personal purposes. The facts also showed that the debtor had twenty five years of experience as a landlord and as such, should have been aware of his fiduciary responsibilities relative to the security deposit money.

This case is a reminder that security deposits much be carefully managed by landlords since judgments against landlords for security deposit related matters exceed the threshold of personal debt; and may not be dischargeable with bankruptcy. As a landlord, you should have a solid management practice in place for the accounting of security deposits and be extremely conscientious about meeting the statutory requirements of returning the deposits in a timely manner.

The Law Offices of Yona Gregory in New London, Connecticut (CT) provides CT landlords with cost effective flat fee eviction services for all courts in Connecticut (CT). Yona Gregory is a Landlord Lawyer specializing in landlord tenant law, assisting Connecticut landlords in reducing the amount of evictions they do; and advising clients on how to ensure non-compliant and non-paying tenants are evicted as soon as possible. The Law Offices of Yona Gregory provide assistance to landlords with rental property in New Haven, CT, Hartford CT, New London CT, as well as all areas of Connecticut.