Moving: Deposit Questions

Hi,

We´re moving out due the landlord is getting divorced and can´t prolong the lease (we would have), due to financial difficulties (house should be sold).

When we moved in, it was said that when we laeve, we can just leave the last three months pay out since we paid three months deposit. The contract said, although, that the deposit cannot be used for rent.

Ok, due we knew they do have the difficulties we naturally did not pay the last three months. Now the landlady is threatening with all the law from here to Timbuktu to pay the rent to the end. My fear is of course, that we will never see the deposit again (we had a lot of post from the court to the landlords, we know they are in severe financial difficulties).

My colleagues told me, it is quite usual to do things the way we did. Can you tell me if this is correct and what it the best way to react? We told the landlady we could get together before "checking out" to go thorugh the house AND paid 10.000 extra as a minor deposit already for smaller repairs (which will never ever cost nearly 10.000...)

thanks a million for your input!