Security Deposit Claimed in Bankruptcy

[hashnet]

What is the name of your state (only U.S. law)? New York

I am a landlord and I want to protect the security deposit that I hold from my tenant in case my tenant goes bankrupt. I understand that should my tenant go bankrupt I will have to return the security to the courts and it becomes part of the total assets that my tenant has. I believe that there is a way to receive a security deposit from my tenant but that it has a different name and falls under a different legal framework and that it does not become part of the bankruptcy procedure. Anyone know how that is done?

 

[FlyingRon]

The deposit isn't yours whether the tenant goes bankrupt or not. If he owes you money now and is not in bankruptcy yet, perhaps you should offer to take the deposit in lieu of some of the money he currently owes you. You'll no longer have the deposit (but he gave it right back to you).