Bankruptcy question. Please help!?

I entered into a contact to rent a beach house from someone for memorial day weeekend. I submitted a $750 deposit to her which she admitted to as no longer having. The landlord has told me she can no longer rent to me and is filing for BK and not to waste my money in suing her. (The county charges $170 to file a small claim) I want to take her to small claims court but not sure if its worth it. If