PPI Claim going to official receiver

Robwilkes

My wife went bankrupt in 2007 and got discharged from the bankruptcy in 2009. It has also been off her credit profile for 2 years.
We claimed PPI recently on an old Egg Loan and got a letter off them today saying that she was due £7000. Egg claimed back over £3000 which was not explained but I presume was for the money owed from the bankruptcy. They have sent a cheque for the balance to her official receiver. After speaking to the OR they said that they will keep the cheque and disperse it to her creditors. Can they do that? I presumed that once you have been discharged from your bankruptcy your debt is paid up and all future earnings are your own...

dunstonh

Can they do that?

yes they can.

I presumed that once you have been discharged from your bankruptcy your debt is paid up and all future earnings are your own...

Correct. However, the refund is on something paid prior to bankruptcy. So, it is a pre-bankruptcy asset.

If it was a refund of premiums paid after bankruptcy, then she would keep the the refund.

welshgasman

No, the discharge is just a formality.

If the loan was taken out prior to the bankruptcy, then any refund goes to the OR.

I did ask the OR one time, "what happens if the loan was taken out after the bankruptcy, would they get the money then"?

Her response that she had never heard of a bankrupt being given a loan..

I have no idea as to how long a bankruptcy sticks with you.

Customers are constantly sending in their discharge letter/certificate believing they are entitled to the money, when they are not.

welshgasman

Robwilkes wrote: »

I presumed that once you have been discharged from your bankruptcy your debt is paid up and all future earnings are your own...

If that was the case every man and his dog would be going bankrupt. Run up a bunch of debts, get rid of all of those debts, wait a few years and then start all over again. Repeat as necessary.

I do feel however that some clarification should be given as to how long a bankruptcy hangs over you. For instance, you get back on your feet, when would you be able to get a credit card or loan at non extortionate rates, if you can get one at all.

Robwilkes

Ok thanks guys