Personal injury claim in bankruptcy

peteandnatasha

Hello me and my wife were declared bankrupt on the 28th Nov this year, On the 28th August this year we were involved in a car accident that was not our fault resulting in both of us being awarded damages,
As it was still an ongoing claim we declared this when we applied for bankruptcy and also told the OR when we had our interview. Does anyone know if we will get to keep any of the claim or will it all go to the OR?
Thanks

philnicandevan

you should be allowed to keep any monies for pain/suffering

any monies for lost work they will take

peteandnatasha

Part of the bankruptcy was having my motorcycle taken away (today actually)
If i use the any money i got from pain and suffering to purchase another motorcycle would they take that too?

philnicandevan

its possible seeing as the OR took the 1st

you need to speak to them asap...

National_Debtline

Hi folks

Just to follow up on what philnicandevan has said

If any money you are allowed to keep for personal pain/suffering (as opposed to lost earnings) "changes character" before discharge - e.g. it is used to buy a vehicle or shares - then the items purchased could potentially be treated as assets and taken by the OR.

See section 30.111 of the Insolvency Service manual for the precise rules:

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter30/Part%205/Part%205.htm

Regards

Dennis @NDL

Movingon_2

You are lucky the other party did know you were declared BR at that point you had no right of action and the case should of been dismissed !!

peteandnatasha

The other party admitted all fault and the claim was made in August long before I was declared bankrupt, It's just the amount of compensation that was being negotiated after I was declared bankrupt.