Ppi after bankruptcy

Catkaty

Both my husband and I went bankrupt nearly 6 years ago. I thought after five years you were released...anyway last August I decided to chase my ppi and had a small 400 pounds payout which I received. On the back of that success we decided to file in my husband's name. we received a letter yesterday stating that they'd owed us 4,000 which will be payed back via an insolvency practitioner as we had been made bankrupt?! I wondered if anyone had the same or if they were allowed to do this?! I received my payout direct.

[Deleted User]

You had no right to put in the PPI complain - only the OR can do that.

Any redress needs to go to the OR. If you used a claims company though, you'll need to settle that bill.

You'll want to tell the OR about the money you received before they check up and come knocking on your door.

Catkaty

Hey I'm sorry but I don't understand your answer. It was a ppi claim for missold ppi. What do you mean by the OR?

Grassy_Knollington

The PPI payment is not yours. It belongs to the OR.

[Deleted User]

Catkaty wrote: »

Hey I'm sorry but I don't understand your answer. It was a ppi claim for missold ppi. What do you mean by the OR?

Official Receiver. The people whose money you currently have.

foxy-stoat

Catkaty wrote: »

I wondered if anyone had the same or if they were allowed to do this?! I received my payout direct.

Yes they are allowed to do this, you weren't allowed to claim your PPI, unless it was for debt that you ran up after you were discharged.

Either keep quiet and hope no one asks for it or pay it to the OR and say you are very sorry.

SonOf

last August I decided to chase my ppi and had a small 400 pounds payout which I received.

If that payment was from payments you made prior to bankruptcy then retaining the money is unlawful. You should notify the OR that you received the money as it is classed as pre-bankruptcy asset.

Some firms will not check the bankruptcy register until after they have made the payment and will notify the OR at a later date. Others will check and send the money directly to the OR.

I wondered if anyone had the same or if they were allowed to do this?!

yes they are. You were never entitled to raise the complaint or get the redress. The OR will pay the money to the unpaid creditors that lost out when you were made bankrupt.

You should now be notifying the OR about the other refund or risk action being taken against you for withholding assets from the OR.

[Deleted User]

Catkaty wrote: »

I thought after five years you were released

You are "released" but NOT in the sense that you are then able to receive pre-bankruptcy assets!

Bankruptcy is a line in the sand, allowing you to forget about your former debt and move on with your life. However, it goes both ways, you cannot therefore seek PPI redress from your former creditors.

Basically the £400 you received still belongs to the Official Receiver for redistribution to your former creditors. This money was never yours.
[QUOTE=foxy-stoat;discussion/6099666[/QUOTE]keep quiet and hope no one asks for it [/QUOTE]
Poor advice. The Official Receiver can come calling for this money at any time even literally years from now...

foxy-stoat

Moneyineptitude said:

[QUOTE=foxy-stoat;discussion/6099666[/QUOTE]keep quiet and hope no one asks for it [/QUOTE]
Poor advice. The Official Receiver can come calling for this money at any time even literally years from now...

Hence why I said "Either" keep quiet or pay it to the OR.

We all know the OP wont pay the OR the money as they have already spent it.  Folk on here rarely follow the best advice, only the advice they want to hear.

Catkaty

Hey everyone thanks for your helpful if a little judgemental comments. I was able to get hold of the official receiver and discuss..was given the same advice in a much nicer way!!! Actually said as the previous payout was so small they weren't worried!! I do understand the reasoning behind all this am only a bit agreived as i told them to claim ppi in the first place and so has assumed any left was ours. I sincerely hope that none of you ever have to file for bankruptcy. It's shameful and degrading without anyone else passing their own judgement. I sincerely hope that none of you ever have a mortgage missold to you or a close family member die of a brain tumour...all things that contributed to our bankruptcy.....

[Deleted User]

Catkaty said: I was able to get hold of the official receiver and discuss..was given the same advice in a much nicer way!!! Actually said as the previous payout was so small they weren't worried!! I do understand the reasoning behind all this 

You should also understand that this issue came up so often when PPI complaints were still allowed that it had a "sticky thread" on the Bankruptcy Board. Understand also that no one was "judging" you for being bankrupt, the negative tone was simply because you clearly did no research prior to your PPI complaint and simply assumed you could make a PPI complaint and benefit from a pre-bankruptcy asset. 

Are you certain the Official Receiver officially sanctioned you keeping the £400 PPI refund you previously received? If so, this is exceedingly unusual and I wouldn't be at all surprised if this position was reversed in the near future. If you want to be certain that they are allowing you to keep this money which, by rights, belongs to your former creditors I'd definitely be requesting that this is  put in writing...