My former tenants allegedly reclaimed their deposit by breaching the letting agent’s account, leaving me financially strained after months of unpaid rent. Bhavishna Kannabiran, restructuring and insolvency solicitor at JMW, advises immediate reporting to police and the deposit protection provider. The Information Commissioner’s Office (ICO) must also be notified of the data breach.

If arrears surpass the deposit value and no tenant claims exist, tenants legally owe the full amount. Recovery options include written demands, County Court claims (no minimum value), or bankruptcy proceedings for debts over £5,000, though success depends on the tenant’s assets. A trustee in bankruptcy would oversee asset distribution, but recovery isn’t guaranteed.