My bankruptcy is still haunting me

theepw

Hi everyone,

Would be incredibly grateful for your advice regarding a really tricky situation that I am in and one in which I feel I might and should have a case against.

Unfortunately, I went through a difficult time many years ago, and was previously declared bankrupt (for ~£15,000) back in April 2009. I still have copies of all the paper work relating to this and the Court Judgements. This bankruptcy only lasted for 6 months, as I was discharged by the Official Receiver in October 2009, ~ 10 years ago now.

In April of this year (2019), I made a PPI claim (using this website’s handy online tool) and I have subsequently found out this morning that a well-known Bank which I used to get loans and car finance from (many years ago ~15 years ago) did indeed mis-sell me PPI.

I had a letter through the post today stating that I have been rewarded > £3,000 due to previous mis-sold PPI insurance, which is obviously a very significant amount of money (and in principle, money that I am owed).

However, in the Bank’s correspondence to me, in the ‘Payment’ section of the letter they sent, they have stated, and I quote:

‘My review shows your financial affairs are being managed by an insolvency practitioner or IVA supervisor. Therefore, as the offered redress payment will normally be an asset of your arrangement; I have made it directly to them’.

I was incredibly shocked when I read this, as my bankruptcy was over 10 years ago now, only short lived (6 months) and I am NOT currently being managed by an insolvency practitioner. In fact, I have bought my own car and have a mortgage on my own house (my financial situation is significantly better now).
I feel it to be incredibly unfair that I am still being penalised (10 years later) for my previous bankruptcy; especially as I have a letter from 2009 stating that I had been ‘released from my trustee by the Secretary of State for Business etc..’.

Does anyone know if they can do this? Or why I am not entitled to that money myself? It appears that they must have sent a check for almost £3,500 directly to this ‘insolvency practitioner or IVA supervisor’, which is no longer even relevant to me anymore! They seem to be stating in the letter that their records show my financial affairs are being managed by an insolvency practitioner, which is not true.

I would be so grateful for advice and your opinions on if I have a case and where I should go from here?

MovingForwards

There are plenty of posts about it.

Unfortunately the money does have to go to the OR as it was to do with the old debts in your BO.

Sadly, there is nothing you can do.

theepw

MovingForwards wrote: »

There are plenty of posts about it.

Unfortunately the money does have to go to the OR as it was to do with the old debts in your BO.

Sadly, there is nothing you can do.

The important thing I have to emphasise is that the claim for PPI had nothing to do with the loans or car finance I had with that particular bank though. The Bank in question were never involved in my bankruptcy (it was related to different financial matters). Does that not change the situation?

debt_doctor

Hi,

Did you take out this PPI before the date of your bankruptcy or after?

DD

[Deleted User]

Why have you duplicated your posts on the PPI board. OP?

theepw

debt_doctor wrote: »

Hi,

Did you take out this PPI before the date of your bankruptcy or after?

DD

It was before I was made bankrupt. Does that make any difference?

debt_doctor

debt_doctor wrote: »

Hi,

Did you take out this PPI before the date of your bankruptcy or after?

DD

After re-reading your post, you say that your bankruptcy was 10 years ago and the PPI was taken out 15 years ago - I assume that you are saying that the loans related to the PPI were paid off prior to your bankruptcy.

When you went bankrupt, the rights that you held automatically became the rights of the OR. So the day before your BR you held the right to make any compensation claim from PPI you had taken out, and on the day of your BR the right to make this claim transferred to the OR.

So, even all of these years later, only the OR had the right to make this claim - not you. It's called a right of action. Now it has been discovered that you have made a claim you were not entitled to make, the payout has been given to the 'person' who did have the right to make the claim - The OR.

Of course this should have been explained to you at the time, but it often wasn't.

DD

theepw

debt_doctor wrote: »

After re-reading your post, you say that your bankruptcy was 10 years ago and the PPI was taken out 15 years ago - I assume that you are saying that the loans related to the PPI were paid off prior to your bankruptcy.

When you went bankrupt, the rights that you held automatically became the rights of the OR. So the day before your BR you held the right to make any compensation claim from PPI you had taken out, and on the day of your BR the right to make this claim transferred to the OR.

So, even all of these years later, only the OR had the right to make this claim - not you. It's called a right of action. Now it has been discovered that you have made a claim you were not entitled to make, the payout has been given to the 'person' who did have the right to make the claim - The OR.

Of course this should have been explained to you at the time, but it often wasn't.

DD

Thanks so much for taking the time to explain my case and to also document the rationale behind the reasoning.

I honestly had no idea about this and that it was not even my right to make the claim in the first place. During the whole PPI application process, there have been so many advertisements about making sure you submit a claim 'before time runs out' I had completely forgotten about my whole bankruptcy situation as it was so long ago. It's only the letter that I had through the door that brought it all back home to me. Like you said, this had unfortunately not been explained to me at the time. Oh well.

Thanks for explaining

debt_doctor

There have been many who have been caught out in relation to a right of action.
I want to make you aware that it is possible that the 'winnings' could go to the OR and the costs of the PPI company could end up with you. It's not common but I have seen it happen.
You would have 2 defences:
1) Ask the OR to pay the costs, as if they had of made the claim themselves - they would of incurred the same costs.
2) If the PPI co. didn't ask you if you have EVER been bankrupt early in the application then they were negligent and a formal complaint should be made with a view to getting the issue to the Financial Ombudsman.

DD

downhillfast

Think yourself lucky you did the claim yourself... through a company and you'd have probably been on the hook for their cut as the bank would still have had to pay the OR direct.

[Deleted User]

theepw wrote: »

I feel it to be incredibly unfair that I am still being penalised (10 years later) for my previous bankruptcy

Think about it logically. You went bankrupt owing money to creditors. Would it be "fair" for you now to be entitled to money you failed to pay in the first place?

Your debt was completely written off and your former creditors can no longer chase you for payment, but it works in both directions with you no longer able to chase your former creditors..