council just demanded deposit back from house lived in 5yrs ago whilst bankcrupt!

amberrh

ny advice gratefully received please on this matter....

I rented a property in 2004 from a private landlord, through an estate agency. I had a real nightmare finding a landlord who would accept tenants in receipt of benefits, so settled for what I could get. A run-down 2b/r bungalow in need of complete refurbishment, but it was a roof over my baby son and I's heads and I couldnt afford to be fussy!

As common place, we had to come up with a months deposit and the first month's rent. After a struggle and numerous visits to the council, they agreed to pay for this and we moved in!The same year I was declared bankcrupt. We stayed for over 2yrs (the rent always paid for by benefits/part benefits) until the landlord sold up and I managed to secure (after again,months of struggling!)a home through a housing association. I was working again by then so paid my own deposit/rent.

I vaguely remember receiving a cheque for about £900 from the estate agency in regards to the deposit back a couple of months after I moved out. It was made out to me so of course I cashed it but didnt spend it in case it was a mistake (in fact I put it in premium bonds for safe keeping).

I forgot about it and the years have passed. Since then I worked for a few years until this Feb when I was made redundant. I was then forced to go back on benefits. Then last week, I receive a 'sundry invoice' from the council for £1810.00 !! For deposit on my old property! There was nothing on the invoice apart from a note stating it could be paid in affordable installments!!

I can't understand why it is for so much as I was on benefits when it was issued. I don't think I should have to pay the first months rent, as that would be covered by benefits I was on surely? Can anyone advise me what I should do? I dont have that sort of money and couldnt even afford to pay it back in installments of £5/mth at the moment! Does anyone know if I would have a chance of arguing it as I was on benefits at the time (and am now)as well as being made bankcrupt?

Many thanks for any advice.

StuntmanBob

amberrh wrote: »

Does anyone know if I would have a chance of arguing it as I was on benefits at the time (and am now)as well as being made bankrupt?

My view is that if you don't try you won't know. I'd fight it like crazy. If the debt pre-dates the bankruptcy then I think (but I'm no expert) that it should have disappeared with all the other debts.

sniggings

I know all(most ,a very few are not)debts are covered by your BR even if they were on your form or not so think all you have to do is tell them your BR number(if its not 1 of the few not covered by BR)but if its not covered by BR then i am sure they will take any offer of a payment plan you say as long as its something.

Merlinexcalibur

I assume you must mean the rent deposit scheme?

http://www.tewkesburybc.gov.uk/index.cfm?articleid=1725#1754

Erm.

Then last week, I receive a 'sundry invoice' from the council for £1810.00 !! For deposit on my old property!

That's one heck of a rent deposit if you don't mind me saying? What is it broken down into?

I vaguely remember receiving a cheque for about £900 from the estate agency in regards to the deposit back a couple of months after I moved out. It was made out to me so of course I cashed it but didnt spend it in case it was a mistake (in fact I put it in premium bonds for safe keeping).

Bit confused about this part. Surely, wouldn't this money have been paid directly back to the council who paid your deposit at the time? Or, at the time the the estate agents made aware of the error and it paid back to the council who paid your deposit? £900 is a whopping deposit TBH for the place you describe. I am not questioning you but I am afraid these questions will get asked at some point anyway by someone. So best they are asked now so people on here can instruct you on what needs to be said.

I can't understand why it is for so much as I was on benefits when it was issued. I don't think I should have to pay the first months rent, as that would be covered by benefits I was on surely? Can anyone advise me what I should do? I dont have that sort of money and couldnt even afford to pay it back in installments of £5/mth at the moment! Does anyone know if I would have a chance of arguing it as I was on benefits at the time (and am now)as well as being made bankcrupt?

I don't think I should have to pay the first months rent, as that would be covered by benefits I was on surely?

I am unsure what you mean by that as you said the council paid the deposit?

McKneff

you seem to have 2 threads going asking the same question

Merlinexcalibur

You see I think your main problem now is this: the council are obviously going to want to know why you never declared or paid the deposit money back when the estate agent issued it to you. I would imagine your debt has doubled due to fees being levied. And the number of years since you left that property, I assume they traced you to your current address. I think this is an area you will need further advice on. Not just the other issues you raised.

(in fact I put it in premium bonds for safe keeping).

Mmm. Arguably, I don't think the council would see that as a valid reason TBH. Because you knew you had the money, why not return it to them at the time? Again, not questioning you but just making you aware of how things will inevitably turn out. Or maybe not. I have no idea.

sniggings

in fact I put it in premium bonds for safe keeping

that was good of you,so just give the bonds back;)

boltonangel

I think the op means that the £1800 is made up of £900 deposit and £900 rent that op states the council paid for in the 1st month.

premium bonds can be cashed in at any time if necessary.

foi1983

boltonangel wrote: »

I think the op means that the £1800 is made up of £900 deposit and £900 rent that op states the council paid for in the 1st month.

premium bonds can be cashed in at any time if necessary.

I don't think the OP wants to cash in the premium bonds. Am I right?

You have basically stolen the council's money and want us to help you not pay it back? It is my opinion that you knew exactly what you were doing when you took the deposit and bought premium bonds.

nervousmother

You will have to pay both back, The deposit would have been issued to you when you left the property and straight away you should have returned that to the council.
I can see your argument about the first months rent as I am guessing you are on benefit to pay your rent.
Unfortunatley estate agents and the benefits work in two different ways.. You had to pay your rent up front so you moved in on the 1st of the month and paid your rent to the end of that month, you would not have received your housing benefit until the end of that month, this you used to pay your next months rent. By the time you moved out of that property you should have had housing benefit paid to you after moving out or the days leading up to it, so in effect you received a benefit overpayment of rent this will also need to go back.

Merlinexcalibur

£900 deposit and £900

Well, all I can say, then is that £900 rent back in 2004 is pretty high given how the property is described - rundown. It sounds more like a mansion than a bungalow shall we say. You see, until I read this thread I didn't even know councils paid deposits for private lets. Usually, the private tennant (NOT council) has to find the deposit out of their own pockets. And from what I read the assisted rent scheme mostly only came into force recently. Unless, it was some form of emergency loan issued by the council. But the OP doesn't say, so can only work with what is there.

However, the council will view it in pure black/white. Money was returned back to the tennant, tennant didn't return it to the council. But kept it. And knew what they were doing with the money as well by investing it in premium bonds. I think it's what's known as 'not a leg to stand on'. I think it's safe to say if this went to court there would be no defense if that argument were to be used.

In fact the judge would probably say something like this: 'I would argue you knew what you were doing when the money was returned by not declaring it'. I am not being judgemental BTW or anything like it but I can't see how you will be able to explain this away from what you posted. You kept the money, it's quite simple. Complete non-defense.