Ppi

ChelseaKings

I was made bankrupt 6 years ago and discharged 5 years ago. My 2 mortgages and 2 bank loans were included in the bankruptcy order but all of them were paid off in full.
Does that mean I can claim PPI for myself or will any claim go to the official receiver.
Any help would be greatful.

[Deleted User]

Bankrupts cannot claim PPI redress, it's treated as a pre-bankruptcy asset and goes to the OR.

https://forums.moneysavingexpert.com/discussion/3766585

antrobus

ChelseaKings wrote: »

I was made bankrupt 6 years ago and discharged 5 years ago. My 2 mortgages and 2 bank loans were included in the bankruptcy order but all of them were paid off in full.
Does that mean I can claim PPI for myself or will any claim go to the official receiver.
Any help would be greatful.

I can see where you're coming from; all your mortgages and loans were "paid off in full", so any procceeds from a successful PPI complaint would be a surplus. But what about your other creditors that were included in the bankruptcy? Presumably there must have been some, otherwise you would not have been bankrupt.

[Deleted User]

I think by "paid in full" the OP means the settlement figure (likely to be much less than originally agreed) from defaulted creditors.

Regardless, any PPI redress is treated as a pre-bankruptcy asset which goes to the OR without any exceptions.

antrobus

Moneyineptitude wrote: »

I think by "paid in full" the OP means the settlement figure (likely to be much less than originally agreed) from defaulted creditors....

I must admit I took it literally to mean "paid in full". Which is possible, secured creditors do indeed sometimes get 100% recovery despite bankruptcy.

Moneyineptitude wrote: »

...Regardless, any PPI redress is treated as a pre-bankruptcy asset which goes to the OR without any exceptions.

Well, yes, as I said, the other creditors would be entitled to the money.

magpiecottage

antrobus wrote: »

I must admit I took it literally to mean "paid in full". Which is possible, secured creditors do indeed sometimes get 100% recovery despite bankruptcy.

This is correct. A secured creditor has the benefit of that security, typically the bankrupt's home. They can take possession of the security and sell it. From the proceeds they can take the cost of taking possession, securing and maintaining it whilst in their possession, selling it, arrears (or at least a proportion of the arrears) and capital outstanding.

Any balance would then be remitted to the borrower or, in the case of a bankrupt, the trustee.

However, this would not change the fact that any redress was a pre-bankruptcy asset so, unless the balance from the sale of the home was sufficient to repay ALL prebankruptcy creditors in full, whether or not their money was secured, the bankrupt would not be entitled to any redress.