Surplus of Funds question

journey_2

Hi everyone,
I`ve received a letter, apparently from the Insolvency Service, telling me that the Official Receiver has now completed the administration in my bankruptcy which took place back in 2007. They are saying that after payment of the creditors there remains a surplus of funds on the account and that these will be returned to me if I provide them with a copy of a form of ID, proof of my address and a signature. They are suggesting that, because their offices are closed at the moment due to the Covid-19 situation, they could transfer the funds to my account if I give them my bank details rather than having to wait potentially a long time for a cheque.
I`ve never heard of anyone getting money back after being made bankrupt so I`m a little sceptical about this. I was wondering if anyone on here could let me know if it is genuine or a scam?

Thanks in advance for any help.  

sacha28

That sounds very much like a scam 😬 that's a lot of personal info they have asked for.

Minkym00

Ring the Insolvency Servuce helpline and give them your details. They will be able tell you if there are funds to be distributed or not. It’s a long times, but it’s certainly not impossible.

mwarby

Of course don’t trust the phone number on the letter ! It’s quite possible they got a decent PPI claim payout or similar, but I wouldn’t get your hopes up too much

journey_2

Unfortunately none of the phone lines are useful at the moment. All the offices are closed due to the Covid-19 situation.
I emailed the Birmingham office of the Insolvency Service as that`s where it says the case is held. I also sent a question through to the Gov.uk Insolvency Service help section. Both came back and said it was genuine.
I was worried as I never seem to get anything. I was actually made redundant on Feb 27th with no consultation and was meant to be paid on the 28th, which didn`t happen. So, when I get a letter saying I`m due money I tend to be sceptical.
I`ve also spoken to my bank and they said that no-one can take money out of my account with the info I`m giving and that they`d monitor payments for me.
I did get a PPI payout a couple of years ago that went to the Official Receiver as it related to a card I had prior to my bankruptcy. ( I`d spent 4 years arguing with the bank and the ombudsman with both of them saying it wasn`t wrongly sold to me before the bank finally admitted they`d done wrong ) but I was told that the payout would go to my creditors. 

fatbelly

If you are sending that info to an  address that you have verified as genuinely the Insolvency  Service then this sounds safe, and your surplus should be paid to you.

It'd be nice to think it would be paid with statutory interest but as it's such a rare occurrence I'm not sure what the guidance is on that. It isn't mentioned in the text I have.

Where a surplus remains after payment of the expenses of the bankruptcy and payment in full and with interest of all the bankrupt’s creditors, the bankrupt is entitled to the surplus [note 14] (see also Part 4 of this chapter regarding accounting for future debts, interest and unproved creditors). Where the trustee has paid interest at the statutory rate to all the creditors, he/she may consider waiting 28 days to pay the surplus to the bankrupt, to allow for late notification from a creditor of contractual interest above the statutory interest rate which is applicable to the debt.

Sspence

Hi
I was made bankrupt in 2015. I paid my amount every month for 36 months and was discharged. 
I recently recieved the same letter from the insolvency service saying they had money to return to me.
I rang the insolvency service using the number from the gov.uk website not the number on the letter incase it was fraudulent.
It was not, the insolvency service have £2500 to return to me that has gone unclaimed by my creditors! I've never heard of this and quite frankly cannot believe the companies did not lay claim to the money I owed them.
The insolvency officer said it's a common thing. I too couldn't find anything about it on the internet

Sspence

Hi just an update on this.. I have today recieved my refund into my bank account.

journey_2

Hi,
That`s fantastic news. Can I ask when you sent them the ID etc that they asked for? I`m just trying to figure out a timescale as I`m in a bit of a hole financially after being made redundant without pay. Thanks.

Sspence

I sent a photo of my driving licence a photo of my water bill and a photo of the completed page 2 I think it is of the letter they sent me. He said they were not sending cheques due to covid 19 (it says in the letter they send cheques) so the money was BACS transferred to me. I received the money within 10 days of making first contact with them