ppi and banckrupsy

shaza1978

hi i was wondering if anyone could help i took a loan out in 2001 and payed it of in 2005 but i then had to go bankrupt in 2007 can i still claim my ppi back

[Deleted User]

Bankrupts can complain about mis-sold PPI. However, any monies awarded are treated as an asset and go to the Official Receiver for redistribution to former creditors.
Bankrupts get nothing personally.

shaza1978

even if i was dicharged in 2008 and the loan was payed befor i went bankrupt

[Deleted User]

shaza1978 wrote: »

even if i was dicharged in 2008 and the loan was payed befor i went bankrupt

Bankrupts can complain about mis-sold PPI. However, any monies awarded are treated as an asset and go to the Official Receiver for redistribution to former creditors.
Bankrupts get nothing personally.

The only exception is PPI taken out after Bankruptcy (unlikely, I know) which can be refunded to the Bankrupt if mis-sold.

JayBattersea

I have had this experience myself and the Official Receiver is now refusing to answer my calls, emails or letters. I claimed my PPI back from Barclays and some of the claim never related to my debts for which I went bankrupt but for loans paid off completely, with no debt many years ago. I was awarded £12,000 in compensation only to be told by Barclays I couldn’t have the money, it went to the Official Receiver. This amount was more than my bankruptcy. I would dispute the fact that this is an asset as at the time, as it was not known that it was available or even would be awarded. I was cleared of my bankruptcy in April 2008 and told that after that I would not have any obligation to pay my debtors. So why am I now told I have to pay my debtors now. Leading up to the Official Receiver getting my money they were always unclear as to the law on this matter. If I couldn’t use the money as an asset at the time of my bankruptcy to pay my debts how can they say so now. I have asked the Official Receiver to tell me where the money is going so as to pay my debtors but they refuse to answer, as I feel I have a right to know. I can’t find anyone with enough knowledge or experience in this area to advise me so if anyone has any further information please say. But this is a warning that you might go through the effort to get an award only to say you can’t have it even though you are now cleared from bankruptcy. I feel like if I ever come in to a large amount of money in the future I will not get it and what was the point of going through the hardship of bankruptcy. Not only did I pay the court for my hearing but now the government have my PPI payment.

dunstonh

I feel like if I ever come in to a large amount of money in the future I will not get it and what was the point of going through the hardship of bankruptcy.

It was to draw a line in the sand to allow you to move forward. Now you are trying to get money from before that line.

roonaldo

shaza1978 wrote: »

even if i was dicharged in 2008 and the loan was payed befor i went bankrupt

No, you dont own the debt anymore. You cant have your debts written off but then want to profit from it.

roonaldo

JayBattersea wrote: »

I have had this experience myself and the Official Receiver is now refusing to answer my calls, emails or letters. I claimed my PPI back from Barclays and some of the claim never related to my debts for which I went bankrupt but for loans paid off completely, with no debt many years ago. I was awarded £12,000 in compensation only to be told by Barclays I couldn’t have the money, it went to the Official Receiver. This amount was more than my bankruptcy. I would dispute the fact that this is an asset as at the time, as it was not known that it was available or even would be awarded. I was cleared of my bankruptcy in April 2008 and told that after that I would not have any obligation to pay my debtors. So why am I now told I have to pay my debtors now. Leading up to the Official Receiver getting my money they were always unclear as to the law on this matter. If I couldn’t use the money as an asset at the time of my bankruptcy to pay my debts how can they say so now. I have asked the Official Receiver to tell me where the money is going so as to pay my debtors but they refuse to answer, as I feel I have a right to know. I can’t find anyone with enough knowledge or experience in this area to advise me so if anyone has any further information please say. But this is a warning that you might go through the effort to get an award only to say you can’t have it even though you are now cleared from bankruptcy. I feel like if I ever come in to a large amount of money in the future I will not get it and what was the point of going through the hardship of bankruptcy. Not only did I pay the court for my hearing but now the government have my PPI payment.

Same again, it doens't matter if its more than the creditors are owed. You no longer own the debt, its not yours. The PPI redress is not yours to keep. You had it written off and cannot now profit from it.

However, I believe any left over funds are held in an consignment account, but I doubt you will ever see it.

debtinfo

JayBattersea wrote: »

I have had this experience myself and the Official Receiver is now refusing to answer my calls, emails or letters. I claimed my PPI back from Barclays and some of the claim never related to my debts for which I went bankrupt but for loans paid off completely, with no debt many years ago. I was awarded £12,000 in compensation only to be told by Barclays I couldn’t have the money, it went to the Official Receiver. This amount was more than my bankruptcy. I would dispute the fact that this is an asset as at the time, as it was not known that it was available or even would be awarded. I was cleared of my bankruptcy in April 2008 and told that after that I would not have any obligation to pay my debtors. So why am I now told I have to pay my debtors now. Leading up to the Official Receiver getting my money they were always unclear as to the law on this matter. If I couldn’t use the money as an asset at the time of my bankruptcy to pay my debts how can they say so now. I have asked the Official Receiver to tell me where the money is going so as to pay my debtors but they refuse to answer, as I feel I have a right to know. I can’t find anyone with enough knowledge or experience in this area to advise me so if anyone has any further information please say. But this is a warning that you might go through the effort to get an award only to say you can’t have it even though you are now cleared from bankruptcy. I feel like if I ever come in to a large amount of money in the future I will not get it and what was the point of going through the hardship of bankruptcy. Not only did I pay the court for my hearing but now the government have my PPI payment.

The reason that it is an asset in the bankruptcy is that the claim is a right of action, the Insolvency Act 1986 is quite clear that things in action are part of the bankruptcy estate. Rights of action are the oppotunity to take court action against another entity in this case the PPI Claim. (but could be another king such as suing for loss of earnings, property disputes etc). Crucially it is the claim itself that vests in the bankruptcy not just the proceeds won. As such it becomes an asset (and can therefore vest) at the moment at which the wrong action was done to you, In this case it the time that you signed the PPI agreement. That is when the asset came into existance because at any point from that date onwards you could have taken action against the bank. Therefore fast forward a few years to the bankruptcy date, and since the asset already exists it vests that day in the bankruptcy.

If the amount paid into the bankruptcy is more than the debts then payments will be made in this order. Bankruptcy Fee, Secretary of State Fee, trustee fees, Preferential creditors,non preferential creditors, statutory 8% interest to creditors.

If there is anything left after that then the remains will be returned to you

~Brock~

You gotta love the indignant nature of the postings by some bankrupts in that they're quite happy to have not paid their original creditors but subsequently up in arms about the fact that they then can't make a profit out of the situation.

[Deleted User]

~Brock~ wrote: »

You gotta love the indignant nature of the postings by some bankrupts in that they're quite happy to have not paid their original creditors but subsequently up in arms about the fact that they then can't make a profit out of the situation.

To be fair, you make it sound like bankruptcy is an easy option when it's not of course.
I agree it's hard to feel any compassion for someone naive enough to think he or she can still gain from financial arrangements made before bankruptcy, though.