PPI / Bankruptcy and Reclaim

greggyboymac

Hi,

I hope someone can please help.

I took out a secured loan in 2005 along with PPI. In Aug 2009 my business failed and I was declared bankrupt and claimed on this PPI until I was employed again. I then continued to pay both the loan and PPI until the PPI finished about a year ago. I was discharged from the bankruptcy in May 2010.
I have recently had a letter from the loan company admitting they mis-sold and are refunding my premiums and 8% interest minus the amount they paid during my claim.
They are going to pay this to the Receiver however surely even though I understand they are apparently entitled to some paid previous to my bankruptcy surely they are not entitled to moneys I continued to pay after my bankruptcy had been discharged?
Please can someone shed some light on this and if anything I can do to claim some of this money paid after discharge.
Thanks

greggyboymac

Sorry just to be clear I'm still paying the loan and have a remaining £18000 balance.

-taff

Unfortunately, you were sold this loan prior to bankruptcy, so it's become an asset that belongs to your bankruptcy not you.

If yu hae ny doubts, ask your OR for more info.

dunstonh

They are going to pay this to the Receiver however surely even though I understand they are apparently entitled to some paid previous to my bankruptcy surely they are not entitled to moneys I continued to pay after my bankruptcy had been discharged?

Anything paid from before you were discharged is a pre-bankruptcy asset and goes to the OR. Anything paid after should come to you.

However, a lot of loans were single premium PPI. This means the cover was technically paid right at the start even though you continued to pay monthly for the debt. Was your PPI standalone monthly direct debit or single premium added at the start?