12.6 Miscellaneous Issues
12.6 Miscellaneous Issues aetrahan Thu, 05/04/2023 - 13:3612.6.1 Venue
12.6.1 Venue aetrahan Thu, 05/04/2023 - 13:3612.6.2 Prescription
12.6.2 Prescription aetrahan Thu, 05/04/2023 - 13:3612.6.3 Burden of Proof
12.6.3 Burden of Proof aetrahan Thu, 05/04/2023 - 13:37A security deposit is the tenant’s property.1 Therefore, the burden of proof is on the landlord to show cause for the retention of the tenant’s deposit (property). In reality, however, a tenant’s success in recovering a security deposit depends heavily on the tenant’s ability to dispute the landlord’s retention with reliable evidence.
- 1In re Universal Sec. & Protection Serv., Inc., 223 B.R. 88, 93 (E.D. La. 1998); cf. La. C.C. art. 2926.
12.6.4 Landlords in Bankruptcy
12.6.4 Landlords in Bankruptcy aetrahan Thu, 05/04/2023 - 14:04In a Chapter 13 bankruptcy, the tenant’s security deposit claim should be a priority claim.1 Generally, all priority claims must be paid in a Chapter 13 bankruptcy. A tenant should consider filing an objection to a Chapter 13 plan if it proposes to pay less than 100% of the claim for the deposit.
In a Chapter 7 bankruptcy, the tenant should argue that the security deposit is not part of the landlord’s bankruptcy estate and that the deposit belongs to the tenant.2 If the security deposit no longer exists, the tenant should file a proof of claim. This may be filed without the payment of any court costs. Although a Chapter 7 bankruptcy will discharge the debt, it is possible that a tenant’s judgment lien, if any, will survive the bankruptcy.