Landlords lost nearly £30,000 when a letting agent failed to protect deposits and rent collected from tenants.
Elizabeth Tomlinson ran First Choice Letting Agents in Great Harwood, near Blackburn, Lancashire.
Her business stopped trading and insolvency investigators discovered £8,250 of tenant deposits missing from the firm’s bank accounts over a five year period.
A more thorough inquiry then revealed another £21,000 in rents she had collected for landlords was unaccounted for.
Besides being made bankrupt at Blackburn County Court, Tomlinson has agreed not to borrow more than £500 or go into business with someone else without declaring her bankruptcy.
She is also banned from becoming a company director for six years.
The Insolvency Service refused to comment on whether the case had been referred to the police for a fraud investigation.
An Insolvency Service spokesman said: “Elizabeth Tomlinson was made bankrupt and given a six-year bankruptcy restrictions undertaking to the Secretary of State for Business, Innovation and Skills.
“The Insolvency Service can neither confirm, nor deny that an investigation is ongoing, planned or completed.”
The firm still has a profile on Google +, the social media site, where someone has left the comment: “Totally incompetent. Does not provide proper paperwork, does not stay on top of problems when they arrive, is barely there to answer her phone, promises and doesn’t deliver. In short, a landlord’s nightmare.”
Local media spoke to Ms Tomlinson outside her detached home in the town, but she has declined to comment.
First Choice Letting Agents in Great Harwood has no connection with letting agents with a similar name elsewhere in the UK.