PPI Claims after bankruptcy

TheGardener

....is there anything on the BR paperwork that highlights this potential bear trap?

debtinfo

TheGardener wrote: »

....is there anything on the BR paperwork that highlights this potential bear trap?

They are never going to give a very exact example as to do so ignores all the other thousands of different circumstances that might possibly arise.

However the NTB2 form you sign does state (if i remember correctly) that

(1)Where a bankruptcy order has been made, the bankrupt is under a duty—
(a)to deliver possession of his estate to the official receiver

and

(2)In the case of any part of the bankrupt’s estate which consists of things possession of which cannot be delivered to the official receiver, and in the case of any property that may be claimed for the bankrupt’s estate by the trustee, it is the bankrupt’s duty to do all such things as may reasonably be required by the official receiver for the protection of those things or that property.

So that is pretty clear that you have to give up your entirety of your assets.

Now someone may say well i didnt know what was an asset in which case they should ask instead of just assuming they get to keep it but also the initial pack points you towards the guide to bankruptcy leaflet the insolvency service produces which says

"If you have made a claim against another person through court proceedings, or you think you may have a claim (a right of action) against another person, the claim may be an asset in the bankruptcy."

Which i think covers the area of PPI fairly well.

Papasmurf_64

Can somebody help .. 1st my ppi is more than what I owe the or do I get the remaining ...2nd if ppi is an asset how do I stand if I cash in on my life insurance is this an asset aswell ??? As I've paid I to that before I was bankrupt and discharged also is paying into a company pension an asset please can somebody explain in simple words

-taff

You are not entitled to complain about PPI or receive any money regarding a complaint if it was sold pre bankruptcy.

The right to complain about it rests with the OR.

TheGardener

Papasmurf_64 wrote: »

Can somebody help .. 1st my ppi is more than what I owe the or do I get the remaining ...2nd if ppi is an asset how do I stand if I cash in on my life insurance is this an asset aswell ??? As I've paid I to that before I was bankrupt and discharged also is paying into a company pension an asset please can somebody explain in simple words

What you owe - in so much as the amount of debt you had when you went BR - is only the tip of the iceberg - the OR will add their fees to the original debt and you may find that your PPI payout is still not enough to cover it. The reality is that it all belongs to the OR - unless they say "here's your change" and give you the remainder.

fedupmr

Hi
Its time something was done to stop this bank rip off
we ended up bankrupt because the Lloyds bank kept advising us to take out loans to off set the other loans and to get us on a managable debt. This never worked and they just kept upping the amount even though they knew we were struggling.
No after we had been discharged in 2011 Lloyds sent me a letter about PPI which i filled in and then they sent me a letter saying they owe me £2.700 then sent the cheque to the official receiver. So the banks are not losing out and they are still ripping us off. This payment was for a loan i had and paid off before i was made bankrupt yet they still take it so they are on a win win situation and us joe public dont stand a chance against them.
The government should look into this and sort it out. People have suffered because the banks employ people who only care about what they can make for there own pockets and people are struggling because of the poor advise from the bank managers.

Not happy at all.

alastairq

then they sent me a letter saying they owe me £2.700 then sent the cheque to the official receiver. So the banks are not losing out and they are still ripping us off.

Not sure how the idea of the banks not losing out, comes about?
The money from the PPI claim [which, by dint of your BAnkruptcy, was not yours to claim anyway.....one of the downsides of BAnkruptcy, which has nothing to do with banks, for example?] went into the BAnkruptcy estate.

The Official Receiver's job was to realise the bankrupt's assets, for the benefit of creditors.

That means, after the costs of administering the Bankruptcy are deducted, the balance is divided equitably between creditors......

The upside being , the Bankruptcy petition protects the bankrupt from the attentions of past creditors...

There's a strong possibility the banks received very little.

I cannot see what there is to complain about?

The rules of bankruptcy were there for all to view, and understand...including those rules referring to assets?


As for the efficacy of the advice received from a bank manager?

Well, we can all look for excuses, but in the end, we take responsibility for our actions.

Next time, we are not so easily persuaded?

Next time, we are more cynical of motives [the primary task of bank employees surely is to make profits for their bank? Banks are not charities, either.]

They are being made more accountable for their past actions.

Maybe we are to blame in the end, for simply, wanting our cake, and trying to eat it?

But, look at us now?

As Discharged bankrupts,are we somewhat unusual in today's society, in that we are [pretty much, perhaps?] debt-free?


Surely that is the best thing we can have done, to pee on the banks' bonfire?

Papasmurf_64

Well it looks like the banks and the official recievers win and there's know way of ever getting your life back to normality not only does it cost £700 to go bankrupt the OR charges another £1550 to pay the creditors ..... How can you ever get your life back isn't it enuff feeling ashamed that your in this situation and the only chance to get back on track is taken away yet once again

alastairq

Feeling ashamed of petitioning for Bankruptcy is as a result of background & upbringing.....strange how our society considers apparent financial failure more of an issue than, for example, marital failure? Just shows where we are encouraged to lay our priorities, for example?

There is, [and rightly so] nothing to be ashamed of about Bankruptcy.

It is a legal tool to achieve an end.

Nobody is 'welching' on a deal , since creditors are treated fairly, equitably....thus getting a share of what we own.

The alternative?

They get nothing?

After all, if one is insolvent, one does not have any reasonable prospect of being able to meet those debts as they fall due.

At least with Bankruptcy, the debtor has gained the honesty of laying their material lives open to the Court to rummage through, for the benefit of those creditors.

What I cannot see is how we have failed to 'get our lives back?'

It is, after all, our 'lives'...[what we aspired to, or wanted?] that got us into the position of insolvency in the first place?

On a personal level, Bankruptcy gives a massive opportunity to 'start afresh'.....without any other bags 'n baggage like millstones around our necks.

What it also allows is for us to take a really good look at what we thought was 'important' in our lives.......and, are they really that important?



As for so-called 'credit ratings?' [biggest load of boswellox society has produced so far]

Well, what difference does it really, truly, make, to our lives?

Nothing, as far as I can see.

Certainly, no difference having a BR on the record, than having a shed load of defaults and CCJs?


So...what has been 'taken away?'

Oh yes, a bit of grief over not being able to cash in on a windfall [which, a few years ago, no-one realised existed?]

No more grief than being one number out on the lottery?

But, let's face it, if the BR hadn't been done, that windfall would have gone straight down the pan, and you would not have seen one iota of benefit from it anyway.



There is a need to embrace the positive side of BR.

JCS1

Papasmurf_64 wrote: »

Well it looks like the banks and the official recievers win and there's know way of ever getting your life back to normality not only does it cost £700 to go bankrupt the OR charges another £1550 to pay the creditors ..... How can you ever get your life back isn't it enuff feeling ashamed that your in this situation and the only chance to get back on track is taken away yet once again

But you no longer had the right to claim the PPI. Whilst I can understand your frustration, the money was not yours.