compensation in bankruptcy

nellis1712

hi, im in the process of making a personal injury claim after a road traffic accident, and wondered if this will be classed as an asset.

Ive got about 11 months of my bankruptcy, and im not sure what the situation is with regards to person injury compensation.

Many thanks for any advice

Bethankim

Hi and welcome,

the personal injury part of any compensation would be yours to keep, if there are any loss of earnings then that would go to the OR.

hope that helps, i have a letter from the OR exempting my personal injury claim, the OR got in touch with my legal insurance bods and they confirmed it.

hope that helps

nellis1712

Bethankim wrote: »

Hi and welcome,

the personal injury part of any compensation would be yours to keep, if there are any loss of earnings then that would go to the OR.

hope that helps, i have a letter from the OR exempting my personal injury claim, the OR got in touch with my legal insurance bods and they confirmed it.

hope that helps

so what do i need to do. Do i have to tell the or that i have a claim, or will he already know?

thanks

tigerfeet2006

It is always best to be upfront with the OR, so do tell him you have a claim being processed.

Bethankim

has it just happened or was your claim already in when you went bankrupt?

yes you will need to tell them, i would either write or more easily email them, with details of your insurers or who ever is dealing with it

put in claim reference
what its for
who is dealing with it and their contact details.

nellis1712

Bethankim wrote: »

has it just happened or was your claim already in when you went bankrupt?

yes you will need to tell them, i would either write or more easily email them, with details of your insurers or who ever is dealing with it

put in claim reference
what its for
who is dealing with it and their contact details.

i went bankrupt last month and ive just put in a personal injury claim

thanksfor all the advice

debtinfo

Hi nellis have a read of this from the IS website as it relates to your situation

31.8.41 Rights of action
The only circumstance where a right of action itself would be claimable as after-acquired property would be where the event leading to the action had occurred during the period of bankruptcy. In these circumstances, however, it is better that the claim is left with the bankrupt for him/her to pursue with any payment received by the bankrupt (other than the element which is personal to the bankrupt -see Chapter 30, Part 5) later claimed as after-acquired property.
The official receiver, as trustee, should write and inform the bankrupt that the right of action will not be claimed for the benefit of the estate. The official receiver should also inform the bankrupt in the letter that should any payment be made as a consequence of successfully pursuing the claim the bankrupt must inform the official receiver within 21 days of receipt of the payment URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part8/part3/part%203%20notes.htm#10#$36801#10"]note 10[/URL. See also Chapter 31.9 and Chapter 30, paragraphs 30.103 to 30.105.


31.8.42 Right of action event post bankruptcy - payment received after discharge
Where the event leading to the right of action happens during the period of bankruptcy, any related (non-personal) award would be claimable as after-acquired property even if it were awarded or paid after discharge, as it is the right of action and not the monies, which constitutes the property.

31.8.43 Right of action – personal award payment received pre-discharge
Where damages relating to a personal action are paid to the bankrupt during the period of bankruptcy they may only be claimed as after-acquired property if they were to change character during the period of bankruptcy– for example, if they were invested in property, or used to purchase another asset URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part8/part3/part%203%20notes.htm#11#$36801#11"]note 11[/URL.
Please see paragraph 31.9.15 for further information on the claiming, or otherwise, of awards under rights of action.