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Agent gone bankrupt holding deposit

Started by NWinch, December 03, 2014, 02:39:21 PM

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NWinch

The agent that holds the deposit on behalf of my tenant has gone into liquidation, is the deposit completely protected from other creditors ie tax man and how do I find out if it is still in the clients account.

Riptide

Should be in an approved scheme either custodial or more likely with an EA insured.  Speak to the tenants and ask them for the details that should have been provided to them.  If they say none have, be worried, be very worried.

EvictionGroup


esk

In theory, the money ought to be protected from other creditors. However, the agent may have spent it anyway, and even if they haven't, you might still have to fight for it!
My understanding is that although the amount of the deposit is notified to the scheme, the actual money itself is kept by the agent, but it should be in a separate client account.
This money is held "on trust" for the tenants and should NOT form part of the bankrupt's estate.