Friend made bankrupt - payment protection insurance ?

tkwad

I know someone who was made bankrupt a few years ago. It was not a pleaseant experience and was sadly unavoidable. Through divorce and loss of job and was mortgaged property. They thought their debt was cleared and they could begin again. Recent advertisements for payment protection inurance etc resulted in an agreed mis selling but that overpayment was immediately sent to mortgage company, But the debt was cleared years ago via bankruptcy. Was this right?

And please no nasty comments im only asking on behalf of a friend!

skylight

Yes. (I am assuming there is no property/mortgage outstanding now as it was repo'd in the BR).

Your friend is no longer the beneficary or owner of the debt. That means that the debt or any asset accrued from it is no longer theirs.

Erm. It's a bit like giving away a lottery ticket. Then the numbers come up. The lottery ticket is no longer yours so you cannot claim the win. It's a naff (full of loopholes) analogy, but do you see the point? You cannot get rid of the debt and then claim something out of it.

However, the mis-sold money shouldn't have gone to the mortgage company either. It should have gone to the OR as an asset- even aquired after BR.

tkwad

Thank you for your quick reply. i will pass on the information.