Accepting PPI offer and bankruptcy wording

Whatisthisnow?

Hi everyone, I'm new!

I was wondering if someone could help me with a PPI question please?
I've recently received an offer from my old bank for an amount I had no idea we had paid towards PPI, but in the letter of acceptance I need to sign it states-
"If I am, or have been subject to an IVA, protected trust deed, Bankruptcy or sequestration, any payment will be made to the relevant account I hold with you."

We did have a bankruptcy 8 years ago but this loan account would have been paid well before the bankruptcy we went though, however there was one loan we held with this bank that was included in the bankruptcy.

So basically I am asking how I should go about managing the situation. I won't go into too much detail but I specifically cancelled any PPI that I spotted being added to any loan or credit cards in the past as I disagreed with it even back then, so this one has been paid without me knowing about it, and I don't see how they could apply this to a bankruptcy that was including different loans at a completely different time, but the way this is worded concerns me.

Can anyone help at all please?
Thanks in advance!

dunstonh

We did have a bankruptcy 8 years ago but this loan account would have been paid well before the bankruptcy we went though, however there was one loan we held with this bank that was included in the bankruptcy.

In which case you have no legal entitlement to the refund. The money should go to the OR as it is a pre-bankruptcy asset. They will distribute it to your creditors that were unpaid when you went bankrupt.

Only PPI you paid after the bankruptcy is yours.

Some people have been caught by the OR for not passing the funds on to them. Tends to be a lag of about 2-3 years. Mainly as the banks have been running the bankruptcy register check after the payouts.

If you think about answering the question falsely, it is fraud. People have been prosecuted and imprisoned for hiding pre-bankruptcy assets.

Whatisthisnow?

I see, even though it was fraudulently obtained money that I would have used elsewhere?

Would there be any point in contacting the OR to see if they have an opinion or are able to make a decision? They let us keep our car worth over £2500 so may allow this as well?

I would never consider not declaring it by the way I just had no idea how this all worked so just thought I'd ask.

Thanks for your help.

dunstonh

I see, even though it was fraudulently obtained money that I would have used elsewhere?

Bankruptcy is a line in the sand. It allows you to move on. The real losers are your creditors.

Would there be any point in contacting the OR to see if they have an opinion or are able to make a decision?

It is not an opinion. It is legal position. It is published on the Govt bankruptcy site.

They let us keep our car worth over £2500 so may allow this as well?

The OR has the ability to allow you to maintain a living standard. A car is usually required for transport.

Whatisthisnow?

"Bankruptcy is a line in the sand. It allows you to move on. The real losers are your creditors."

I know what a bankruptcy is, it caused me enough stress for a year of my life trying to work things out so my kids could eat, to know what it is. I don't think stating that the creditors are the "real losers" here is appropriate, I simply asked a question, and trust me they weren't.

I'm aware of why they let us keep the car, but £2500 worth is over and above "reasonable" I thought.

So if this is a 'pre-bankruptcy asset' does that mean the bank aren't able to distribute it themselves to themselves and this form is actually incorrect? So the OR needs to have it rather than them?

dunstonh

I know what a bankruptcy is, it caused me enough stress for a year of my life trying to work things out so my kids could eat, to know what it is. I don't think stating that the creditors are the "real losers" here is appropriate, I simply asked a question, and trust me they weren't.

The point was being made in reference to you could have used the money.

I'm aware of why they let us keep the car, but £2500 worth is over and above "reasonable" I thought.

It would have been sold to a dealer. So, it would have got less. It would need replacing with a new one. For £2500 its not worth the effort. It was already a low value vehicle. If you added a zero to the value, they would have had it off you in a heartbeat.

So if this is a 'pre-bankruptcy asset' does that mean the bank aren't able to distribute it themselves to themselves and this form is actually incorrect? So the OR needs to have it rather than them?

The bank should send it to the OR.

[Deleted User]

In my opinion, extended "conversations" about this matter are best avoided.

The OP can see for himself the position in detail by reading the link to the "sticky" on the bankruptcy board:
https://forums.moneysavingexpert.com/discussion/3766585

Whatisthisnow?

Ok I'll make sure the OR gets it then, sounds like the bank are trying to use it to pay off their own credit, and if I don't have the right to the money then I at least want it deal with correctly, can't trust them after everything else that's happened with them.

Thanks for your response.

Whatisthisnow?

"In my opinion, extended "conversations" about this matter are best avoided. "

All sorted now thank you.

"The OP can see for himself the position in detail by reading the link to the "sticky" on the bankruptcy board:"

"Herself", sorry I don't use forums often so missed that. Will keep that in mind next time.