Bankrupt & Criminal Injuries Payment

scouseman

Hi

Can somebody please give me some advice, I am currently bankrupt and I am due to be paid £1000 for something that happened to me by the criminal injuries board.
Does anybody know if this payment affects my bankrupcy?
What is the maximum you can have in your account?
Many Thanks
Mark

JCS1

Depends on how the payment is made up. Any payment for pain/physical suffering is yours, any payment for loss of earnings would go to the OR.

Did you declare this as an asset on your SOA?

Bnjracing

Similar situation - OH hopefully getting some compensation too. Have been told its his to keep as it was cos of "pain n suffering"; however if you spend it does what you spend it on become an asset? Hopefully getting ED shortly but IPA will be in place; do we tell OR as it is not really an increase in income?

scouseman

JCS1 wrote: »

Depends on how the payment is made up. Any payment for pain/physical suffering is yours, any payment for loss of earnings would go to the OR.

Did you declare this as an asset on your SOA?

No the payment was not for loss of earnings, so I guess it should be ok.
I may phone my trustees up and ask them hypothetically.
Maybe it would be best just not to say anything?
Thanks for the replys
Mark

scouseman

Hi ALL

Just to update this thread, today I decided to contact my trustees and asked them hypothetically if I was to receive a payment for criminal injuries of 1000 pound would they want it? There answer was YES. This payment was for pain and suffering not loss of earnings.
Hope this helps somebody in a similar situation .
Mark

tigerfeet2006

Scouseman I would double and triple check that information.

Send the insolvency service an email. [EMAIL="insolvency.enquiryline@insolvency.gsi.gov.uk"]insolvency.enquiryline@insolvency.gsi.gov.uk[/EMAIL]

JCS is an ex-examiner so it is rare he is wrong.

philnicandamy

http://www.insolvency.gov.uk/contactus/general.htm

I would triple check.....I received a payout after a car accident the OR took loss of earnings but left me the rest for pain & suffering...

JCS1

From the IS website:

31.8.3 Examples of after-acquired property


Examples of some after-acquired property are as follows:-

1. If an award is made to the bankrupt under the Criminal Injuries Compensation Scheme, it may not be claimed where it relates to bodily injury to the bankrupt. The position where part of the award is in respect of loss of earnings is uncertain. It may be possible for the trustee to claim that part of the award which relates to past earnings, including those up to the date of the bankrupt’s discharge. However, advice should be sought from Technical Section in such cases. If the award has been used to purchase an asset, the trustee should deal with that property in the same way as for damages for personal injury (see (4) below). A right to or expectation of an award is not "property" within the meaning of the Act and does not vest in the trustee.
2. If there is a build up of funds in the bankrupt’s bank or building society account, the official receiver should consider claiming monies that are in excess of those necessary to satisfy the basic domestic needs of the bankrupt and his family. If the accumulation is due to there being an excess of disposable income, consideration should be given to applying for an income payments order.
3. Any redundancy payment or payment in lieu of notice should not be treated as income but may be claimed as after-acquired property. However, the official receiver, as trustee, should be satisfied, by contacting the bankrupt’s former employer if necessary, that the amount claimed as after-acquired property does not include any amount payable in respect of wages (which must be regarded as being income).
4. Any rights of action which relate to the bodily or mental suffering of a bankrupt, or from injury to his person or reputation, will remain vested in him. Reference should be made to chapter 31.9 (particularly part 3) for further guidance and for details of the circumstances when the funds awarded following a successful action may be claimed.

scouseman

Hi
I think I have found out were the discrepancy may be, I did not realise but Scottish and English bankruptcy law is different and I live in Scotland, Although I still need to double check the information I have been given by the trustee.
Sorry for any confusion
Again thanks for the replies
scouseman

coolcait

Hiya scouseman

Here's the relevant bit from the Accountant in Bankruptcy's guidance for trustees:

66.22.2 Criminal Injuries Compensation

It is provided in Section 7(2) of the Criminal Injuries Compensation Act 1995 (replacing earlier provisions in section 117 of the Criminal Justice Act 1988, now repealed), that an award made under the Criminal Injuries Compensation Scheme to a debtor shall not vest in the trustee. It should be noted that the statutory scheme giving effect to this provision came into effect on 1 April 1996.

Awards resulting from claims made before 1 April 1996 are not covered by the Scheme; such awards do therefore still vest in the trustee as acquirenda in terms of Section 32(6) of the Act. This is of course without prejudice to the debtor’s right to apply to the sheriff under Section 31(6) of the Act, for an order exempting the award from vesting in the trustee.

Despite awards made in respect of claims made under this Scheme vesting in the debtor, it is open to a trustee to arrange an IPA or IPO in terms of Sections 32(4A) and 32(2) of the Act."

Link:

http://www.aib.gov.uk/Resource/Doc/4/0000676.doc

Maybe you should phone your trustee back, and refer him to that guidance

Good luck!

scouseman

Many Thanks Coolcait for the link and information
I cannot believe they gave me naff information, it was a manager I spoke with as well at AIB, clearly they have not got a clue what they are talking about,
Many Thanks
scouseman

coolcait wrote: »

Hiya scouseman

Here's the relevant bit from the Accountant in Bankruptcy's guidance for trustees:

66.22.2 Criminal Injuries Compensation
It is provided in Section 7(2) of the Criminal Injuries Compensation Act 1995 (replacing earlier provisions in section 117 of the Criminal Justice Act 1988, now repealed), that an award made under the Criminal Injuries Compensation Scheme to a debtor shall not vest in the trustee. It should be noted that the statutory scheme giving effect to this provision came into effect on 1 April 1996.
Awards resulting from claims made before 1 April 1996 are not covered by the Scheme; such awards do therefore still vest in the trustee as acquirenda in terms of Section 32(6) of the Act. This is of course without prejudice to the debtor’s right to apply to the sheriff under Section 31(6) of the Act, for an order exempting the award from vesting in the trustee.
Despite awards made in respect of claims made under this Scheme vesting in the debtor, it is open to a trustee to arrange an IPA or IPO in terms of Sections 32(4A) and 32(2) of the Act."
Link:

http://www.aib.gov.uk/Resource/Doc/4/0000676.doc

Maybe you should phone your trustee back, and refer him to that guidance

Good luck!