PPI before bankruptcy help please

skintoz

Hi,

My bankruptcy hearing is due in two weeks i have a question about PPI.

I have 3 claims going through one of these companies who take a percentage (i know should have done it myself) do i list this is a possible asset on the bankruptcy forms?

two are with my main creditor who have knocked it back and they are with Finanical Ombudsman the other was knocked back by the Financial Ombudsman and is a 2nd appeal stage all of them could take over a year to be sorted according the claims company.

I understand any money given would go to the OR i just need to know what to put on the form also i don't know what value any compensation would be.

Also with regards to the claims company percentage do i need to put them down as a possible creditor? i know the percentage to be paid on any claim that is won or will their fee be paid out by the OR?

Thanks

adpod

I was given a form to fill in all about PPI including anything I had already cliamed for and how much etc, ofcourse any money owed goes direct to them.

The form was in the OR questionnaire given to me after BR

woodformoretrees

I was sent a PPI form about six months in. It was from the IP. The OR didn't ask about PPI. I presume an oversight on their part (?)

JCS1

woodformoretrees wrote: »

I was sent a PPI form about six months in. It was from the IP. The OR didn't ask about PPI. I presume an oversight on their part (?)

If an IP is appointed they will deal with all assets so the OR wouldn't even ask.

debt_doctor

Hi Skintoz,


You must make sure that the claims company gives you a bill for their services BEFORE you go bankrupt, other wise you will end up with an after BR debt that you would be liable for - and the OR / IP gets the pay out.


Beware.


DD

skintoz

Thank you DD,

Does it make any difference if the loans that the PPI was against are all paid off in full years ago?

The PPI claims companies terms allow me to cancel subject to cancellation fee and they state they may cancel if they find out i am in a IVA or bankruptcy which they will (doesn't mention anything about a fee in this part)

They also state that any fee due to a successful claim would be paid out of the estate.

I am thinking i would be better letting the claims continue and hope they fail or if they win then the OR will pay out the fee rather than cancel as my hearing is under 2 weeks away.

the government website on insolvency just mentions you could be liable for fees for any claims taken out after bankruptcy but all compensations would still be due to IP/OR.

I suppose my point is if the PPI claim is an asset the should the PPI company also not caught up in the whole bankruptcy process as a creditor?

Edit - i have just found this on the OR technical manual for anyone else worried about this, looks like the OR takes control of it all and any fees have to go via them.

31.9A.38 Contacting the CMC (claims management company) the bankrupt has already instructed a CMC prior to the making of the bankruptcy order, the official receiver, should seek to take control of the complaint and write to the CMC advising that:
(a) The complaint now vests in the official receiver, as trustee of the bankrupt’s estate.
(b) The bankrupt is without standing to instruct in this matter
(c) The official receiver does not intend to adopt the contract.
(d) The CMC may wish to submit a claim for any amounts outstanding to them up to the date of the bankruptcy order.
(e) Any compensation payment should be remitted to the official receiver as trustee of the bankrupt’s estate.


but if you instruct a company after bankruptcy then you would be liable for the fees.

31.9A.46 Bankrupt ultimately liable for CMC fees if instruction post-dates bankruptcy Ultimately, where the bankrupt’s instruction to the CMC is after the date of the bankruptcy order, it is the bankrupt who is liable under the contract with the CMC and, any liability will be a post-bankruptcy debt