personal injury

vicky1967

could you please tell me what happens if I got a payout for a personal injury whilst I am bankrupt, I am discharged in about a weeks time, I was advised that I didn't have to declare it as it was for a personal injury,I was also advised to set up a personal injury trust fund I don't want to make any errors.

antrobus

‘Nothing is more clear than that a right of action for an injury to the property of the bankrupt will pass to his [trustee]; but it is otherwise as to an injury to his personal comfort. [Trustees] of a bankrupt are not to make a profit of a man’s wounded feelings.’

http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part9/part3/part_3.htm

vicky1967

thank you for your reply it was for a rta

longtermplanner

As antrobus's link makes clear, this is not always simple subject if what you think of as a personal injury claim may be 'hybrid'.

The date of your discharge doesn't matter, nor does the date when you actually receive a payout.

I suggest you should first discuss it with your solicitor and then inform the Official Receiver.

If the OR is entitled to some of the money, then I doubt setting up a trust fund would get round this. It may just land you with additional costs.

antrobus

vicky1967 wrote: »

thank you for your reply it was for a rta

Damages received in respect of any physical or mental injury suffered as a result of a RTA would be yours. Damages received in respect of any loss of earnings incurred as a result of a RTA would belong to your trustee in bankruptcy.

longtermplanner wrote: »

...I suggest you should first discuss it with your solicitor and then inform the Official Receiver....

Proper legal advice is always to be recommended.

longtermplanner wrote: »

...If the OR is entitled to some of the money, then I doubt setting up a trust fund would get round this. It may just land you with additional costs.

I would suspect that when the OP said "I was also advised to set up a personal injury trust fund" they were just asking an extra question.
I don't believe that establishing a personal injury trust fund would have any effect on the OR's entitlements; it would however effect the OP's entitlement to means tested benefits. Which would be why they would have been advised to set one up.

vicky1967

hi yes trust fund is tested benefits