PPI and bankruptcy

JasonHand

Good Afternoon,

Now I appreciate this topic has cropped up before but I do have a query.

A few weeks ago I put in a PPI case in with Barclays for a friend of mine who was made bankrupt back in 2008. Now the PPI policy was before this time. Before I made the complaint I was unaware that PPI was classed as an asset and therefore if taken out before bankruptcy the refund would go directly to the official receiver.

Anyway a letter was received back from Barclays stating the complaint was upheld and a refund would be paid but then it goes on to say the following

"Our records show you are currently subject to a bankruptcy order. The refund of £ will be made by way of cheque to the offical receiver" All of which I now fully understand. But then it goes on to say

"If you believe you are no longer subject to the bankruptcy order or that the offical receiver is not due these funds please contact them to discuss your concerns before contacting us"

So I'm a bit confused with this paragraph. My understanding is the person in question is no longer subject to the order.

If the letter had not mentioned this piece of text then I would have fully understood the situation and left it at that.

Obviously I'm probably missing something here so any advice would be most welcome

-taff

They've checked, he is a bankrupt, if the credit was taken out post bankruptcy he could have had it back.

JasonHand

-taff wrote: »

They've checked, he is a bankrupt, if the credit was taken out post bankruptcy he could have had it back.

Thanks for the response. No it was taken out before. So is this what the 2nd paragraph means. Are they saying simply asking if the policy was taken out after bankruptcy?

dunstonh

"If you believe you are no longer subject to the bankruptcy order or that the offical receiver is not due these funds please contact them to discuss your concerns before contacting us"

So I'm a bit confused with this paragraph. My understanding is the person in question is no longer subject to the order.

Sometimes people go bankrupt but the assets recovered are sufficient to cover the liabilities in the end. Once all creditors have been repaid, the person is no longer subject to the order.

JasonHand

dunstonh wrote: »

Sometimes people go bankrupt but the assets recovered are sufficient to cover the liabilities in the end. Once all creditors have been repaid, the person is no longer subject to the order.

Ah right that does make sense now. Sadly I would doubt the person in question would have covered their liabilities.

To be honest I'm just relieved they didn't go through a claims management company

JasonHand

Sorry one last quick question. So a BO will continue indefinitely until all liabilities have been covered? It doesn't come to end in a given time for example?

Once again thanks for the responses, I appreciate the time you are taking to answer.

Nasqueron

Yes


Bankruptcy is a line in the sand to allow a fresh start, however, it means you cannot prosper from pre-bankruptcy assets so any money that was due back for any reason relating to debts wiped in the bankruptcy belongs to the OR to give to the creditors.

JasonHand

Nasqueron wrote: »

Yes


Bankruptcy is a line in the sand to allow a fresh start, however, it means you cannot prosper from pre-bankruptcy assets so any money that was due back for any reason relating to debts wiped in the bankruptcy belongs to the OR to give to the creditors.

Thanks very much Nasqueron. I thought this would end up being the case.

Not to worry. It would have been good if they could have got the refund but they've not lost anything and as I said I'm just relieved they didn't go through a claims management company.