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Welcome to JA.
Am sorry to hear about your situation.
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What did your landlord say when you proposed the deposit idea?
Although you still have to pay rent however an agreement can be struck between you and the landlord. The deposit idea is a good idea that he should say yes or no to or come up with an alternative arrangement other than demand money which you cannot afford.
Further if he commenced court proceedings against you to recover the money he may be met with an order from the court which requires you to pay a lesser amount per month than what could be potentially agreed.
Do you understand what I have stated if not please let me know.
If you understand what I have stated I will proceed to the next step.
I suggest you return to the landlord and outline the position that you are unable to afford the monthly payment therefore can the deposit be used to settle the losses or alternatively can a repayment plan be negotiated.
When considering the repayment options ensure you agree A FIGURE and TIME frame you can abide by and not the landlord because you may end up back in a position asking to renegotiate.
I hope I have clarified the position if not please let me know.
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