Landlord bankrupt, I find my deposit wasn't paid into a tenancy deposit scheme

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    Landlord bankrupt, I find my deposit wasn't paid into a tenancy deposit scheme

    Your advice would be welcomed. My Landlord (a property development company) has gone bankrupt. I received a letter from the Receivers telling me not to pay any more rent to the old landlord and they are supposed to be sending me details of where to send future payments. I am hoping to move out in two weeks time (moving into my own mortgaged home) and have come to realise that my deposit of one month's rent was not put into a tenancy deposit scheme (despite my tenanacy agreement stating that it would be).

    Is the receiver/bank responsible for the deposit now or do I have to write it off? Would I be classed as one of the creditors?

    I have a receipt for the deposit that was paid to a letting agent. he tells me though that he passed the money straight to the landlord and therefore it is nothing to do with him. As he signed the receipt as money received does he not have any responsibility for it?

    Not sure: I know both agents and landlords have been on the receiving end of successful actions by tenants over deposits, but your situation is not one I know about.

    Hopefully someone smarter than me will be along soon, but think about 'phoning Shelter, 0808 800 4444 see
    Shelter provides a free, national telephone advice line staffed by trained housing advisers. We have helped thousands of people, from finding them a place to sleep to suggesting how to handle mortgage arrears.
    Ring 0808 800 4444

    8am-8pm Monday-Friday
    8am-5pm Saturday-Sunday

    Calls are free from UK landlines and main
    mobile networks (Virgin, Orange, 3, T-mobile, Vodafone and O2).
    - but expect a wait, they are a very busy charity..

    I guess the receivers might argue you are just another creditor of the bankrupt landlord, and may get a share of any eventual payout from any assets (eg 5p in the £...) so in your shoes anything I could do to go after the agent would be better.

    You could try & see if the receivers would allow the "deposit" to be counted as rent - but I suspect there's rules saying they can't do that...

    Read your tenancy: Does it say anywhere what the deposit can be used for in addition for damages - eg rent???

    Best of luck in your new home..
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


      Is the Letting Agent responsible for my missing deposit?

      Thanks for your advice on this artfuldodger. I spoke to Shelter who suggested that the letting agent might be held responsible for the deposit. I rented the property through a letting agent and paid my deposit to him. I have a receipt for this. It doesn't say anywhere on the receipt that the money was being passed to the property development company (now bankrupt). I'm not sure how to pursue the letting agent for the missing deposit. Does anyone have any advice as to how I go about this?


        Firstly, I would try and get an appointment with a solicitor who understands landlord and tenant law. Depending on your circumstances, you may be able to get a session funded by the community legal service. I am pretty sure artful is right, but case law would be useful.

        Ultimately though, you would sue the agent jointly with the landlord. If your tenancy ends after 5/5/12 then you could consider suing for not only your deposit, but for the penalties established in the new Localism Act - up to 3 x the value of your deposit. However, it is not a DIY claim, and if you have to pay for legal support it will be expensive. Mind you, if you get judgement against the agent, they should be ordered to refund your court costs and legal fees.


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