Bankruptcy advice

lyns181013_2

Hi, Can you claim back PPI if you are discharged bankrupt, or would it just go to your debtors?

Thanks:j

Lyns181013

minic

Hi,

If its ppi for debts incurred pre-bankruptcy then I'm afraid it would just go to your creditors (providing the amount of the claim isn't in excess of the debts that went into BR plus OR costs). As far as I'm aware it's up to the OR to submit a ppi claim or not, I don't think you should be putting in a claim.

M

tigerfeet2006

This is a useful sticky to read

https://forums.moneysavingexpert.com/discussion/3766585

alastairq

As minic says..... technically it is the OR's duty to claim PPI, not the BR's.

However, if a BR [discharged or undischarged] individual engages a company to claim PPI on their behalf, whilst the amount received should immediately go to the OR..[if not, then regulations have been breached, and the sums can be subsequently re-claimed should the oR find out]....the administration fees a company normally charges for this service could still be payable by the BR individual.

However, it might be argued that the BR individual actually has no 'right' to engage a company to pursue PPI.....I suspect any PPI claims company would initially make a check to see if BR is involved??

Also, if a joint 'account' holder who was not BR, made such a claim... the portion the BR individual is entitled to , may be claimed by the OR.

However...from reports on this forum, it may be that small sums could be deemed 'insignificant' to an OR, and the claimant be allowed to keep them.....but this, I feel is in no way a guarantee.

The fees issue is, to my limited knowledge, and untested area at the moment.