IS this classed as PPI??

Munch85
Munch85 Posts: 3 Newbie
in Bankruptcy & living with it
Afternoon all. I was made bankrupt back in 2009. Discharged after 6 months. I lost everything, my house, car, the lot. I have now been sent a cheque from my old mortgage provider for a “refund of arrears management fees, litigation fees and solicitors costs” relating to my closed mortgage account.
Can I keep this money?? Bearing in mind this happened 9 years ago!
Please help!!

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    No. .
  • Munch85
    Munch85 Posts: 3 Newbie
    What do I do with it then??
  • dunstonh
    dunstonh Posts: 116,353 Forumite
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    If the mortgage it relates to is from before your bankruptcy, you let the OR know you have received it and ask them if they want it or you can keep it.

    If its a mortgage you have had after bankruptcy then it is yours.
    IS this classed as PPI??

    PPI is a specific type of insurance.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi Munch85


    Welcome to the forum. The Insolvency Service technical manual says:


    'Any property which would have been an asset had it been in the bankrupt!!!8217;s possession as at the date of the making of the order would be considered after-acquired property.'


    That means that had your mortgage lender given you the refund at the time of the bankruptcy your OR would have claimed it as an asset. You'll need to contact your OR and inform them about the refund. It is very likely they will take this unless all your debts and OR's fees had previously been paid off by the sale of your assets/IPA in your bankruptcy.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    Munch85 wrote: »
    What do I do with it then??
    By law you need to declare it to the Official Receiver who will use it to pay your former creditors.
  • Munch85
    Munch85 Posts: 3 Newbie
    Thank you for your replies. It!!!8217;s only £400 so doubt it will go very far but never mind. Got to try and find a number for my OR now! Why wait 9 years to send it?!!
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    Munch85 wrote: »
    Why wait 9 years to send it?!!
    Probably part of a much larger review by the bank of many customer accounts rather than yours alone.

    Regardless, it remains a pre-bankruptcy asset to which you have no entitlement I'm afraid.
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