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Even if the rent was collected in cash, it is the responsibility of the agency to deposit the collected rent into the trust account and to then pay it to the landlord. If the correct process isn't followed, the agency is responsible and their license can be withdrawn. If its in NSW you'll need...

I sounds about right. At the time Nathan called me and told me they were starting out but the management fee was high when I was paying 5% + GST

I had a similar case with an LJ Hooker Office which also declared bankruptcy. I lodged a claim with fair trading who I believe have a compensation fund and they paid me back 100%