Estate Agent Bankrupt!

nazlfc

A friend of mine has been renting out their home and had a letting agent to deal with the tenant including collecting the rent for which they took a commision. However, last month the letting agent proposed bankruptcy and did not pay that months rent. My friend is really concerned that they have lost alot of money which was supposed to pay for that months mortgage payment. In the meantime, they have cancelled the standing order between themselves and the letting agent and have asked the tenants to do the same.

I have advised them to look at their agreement with the agent to see what the situation is under such a scenario and also refer to citizens advice and local trading standards.

Does anyone have any experience of dealing with this type of issue or whether there is anyway that the money could be redeemed.

BitterAndTwisted

Bankruptcy or in liquidation? If there's no money to be had, then there's no money to fight over.

nazlfc

BitterAndTwisted wrote: »

Bankruptcy or in liquidation? If there's no money to be had, then there's no money to fight over.

Good question, I'll find out, in the meantime, what's the difference in this scenario? What does this mean in terms of them getting their money back?

They haven't officially declared becoming either they have notified my friend that they are proposing to one of the above and have refusing to pay as it should have come via their standing order. My friend has repeatedly asked for the money and they aren't doing anything.

BitterAndTwisted

Individual/sole-trader=bankruptcy. Limited company=liquidation.

Has your friend actually visited their office and demanded their money in a very loud voice in front of their clients? I would. It might not mean they get paid but it might give some satisfaction, however tiny.

nazlfc

They are a limited company and my friend has demanded their money back from them a few times. They have been taken over the administrators who have contacted my friend but have not guranteed that they will get their money back.

Is their a genuine chance of them getting there money back. Also, their tenants are concerned that they may have lost their deposit as a result of the agent going into liquidation. I'm sure that their deposit is secure and recoverable though?