LILA (Sequestration) and PPI Award? - HELP!

molloyj1979

My Husband sought by himself and was declared Bankrupt (Sequestration under Scottish Law, as we understand it) through Low Income Low Asset (LILA) only at the start of Feb this year. Around the same time as applying for Sequestration, He also claimed for miss-sold PPI (also in His name). We now have received an offer for a substantial amount, which works out at around 50% of the TOTAL Debt owed. We have of-course advised the Trustee - AIB. However, impatient as I am, is wondering how this will affect the Sequestration under the LILA scheme? Can anyone HELP please??? Thanks

fermi

Affect in what respect? Certainly wouldn't be enough to annul etc? And I'm 99% sure it would be claimable by your trustee?

coolcait

I'm not sure what you mean by "how will this affect the sequestration under the LILA scheme", so these answers might be missing your point! sorry.

- there isn't a "LILA scheme". There is simply 'sequestration', and there are a number of ways to show that you qualify to "make yourself bankrupt". Low Income Low Asset is one of those ways.

- your husband will still be sequestrated, even though he now has this PPI refund.

- the refund will 'vest in the trustee' - that means it will go to AiB

Does any of that answer your question?

Flm67

I think the OP means that they qualified under the LILA rules for bankruptcy. Now that they have the PPI refund they are worried that it will change. Not sure about this but I'm sure AIB or OR will take the refund.

molloyj1979

fermi wrote: »

Affect in what respect? Certainly wouldn't be enough to annul etc? And I'm 99% sure it would be claimable by your trustee?

Im sure I read somewhere that there is an option to pay back at least 25p in the £1 and this has to be negotiated by the trustee - if the PPI refund is 50% of the TOTAL debt, then does that not give us a better chance of keeping some of the money back, all down to the trustee ofcourse! I mean 'affect' as in the sequestration was granted under low income low asset, and I am referring to having financial hardship anyway and does this matter if it comes to getting the chance to keep some money.

molloyj1979

Yes, that sounds like I understood it to be

hjibds

Your unlikely to be able to keep any of the money from the PPI, AiB need to look after the interest of the creditors, they also have their own fees that will be taken off any money that is gathered before the creditors get a penny.

Sorry to be the bearer of bad news.