Right….bit of a story, but please bear with me…

My daughters landlord has gone bankrupt, she paid £500 deposit, along with rent paid up until July 2010.
Her landlord didn’t put the deposit in an agreed place, like he said he would, and she has been told she will lose that.
As for the rent she has paid up until July, she will have to join the long list of creditors, and hope she gets at least some of it back. The rent included all utility bills too, that she is having to pay herself now.
If she gets evicted from the house, she is a post grad student, has borrowed the money from a relative, and won’t be able to fund another lot of rent, as she doesn’t feel she can go back and ask for more money. She’s already in debt up to her ears (student loans and such, plus this years fees, rent and deposit-as it’s post grad she receives no help from the state or banks) and has only a part time job on basic rate pay, due to the workload on the course, which is really intensive.
The tenants agreement is basically null and void now, as he is no longer her landlord, and nothing else has been signed – he didn’t stick to his part of the agreement anyway. At the moment, the house is in the hands of the official receiver, and we have no idea what is going to happen.
There was never an inventory signed for any of the furniture, or household stuff, and the landlord doesn’t appear to have much of a clue as to what’s there, apart from ‘a chest of drawers’ etc.

My question is…. if my daughter either swaps the nice, although quite cheap, furniture in the house for stuff that might not be as nice, but still serviceable, and uses the good stuff to set up home when she finishes uni (we’re talking bed, wardrobe, and chest of drawers here – not a whole house full) which will be better than the stuff she presently has at home, and would see her right for some years to come, it would save her having to get new stuff, and also would go some way to providing a bit of compensation for the £500 she has definitely lost, and the other money she has potentially lost. As I say, she never signed for any of it, and presumably, as far as the official receiver, or the mortgage people know, there is only a basic description of any stuff that might be in the house.

I know it’s not strictly legal, or ethical, but this girl has basically lost over a thousand pounds (of someone else’s money at the end of the day)
I myself would dearly love to help my daughter, but I’m on statutory sick pay at the mo as I have cancer, and I have no money to spare at all. It was always my dream to see her through uni, and help towards her setting up her first home, but sadly, this is not possible now.
To be honest, if it were me I’d clean the house out and sell the lot!!! and on my own head be it, but this is her, and I don’t want to see her get into trouble. The repossession people surely aren’t going to bother what sort of furniture is in the house are they? They’ll just note that ‘one chest of drawers’ is in the bedroom etc.

What would you do? She’s had advice as to the rent and stuff, but obviously aren’t ask any official bodies for advice on this matter!

Many thanks for your opinions on this