PPI Claims after bankruptcy

tigerfeet2006 · 9 January 2015 at 8:31PM

Rogdog79 wrote: »

Thank you for that.

There was a repossession in my case but im now with a different partner who does have a decent size deposit but we want to buy together if not then can just my wages be taken into account as I earn double her income and just her name be on the mortgage as I don't mind that ?

Hi,

I would start a new thread with this question in as this is a thread is for PPI questions and your question could get missed.

BigMan13 · 13 January 2015 at 3:13PM

Hi,

This is a great post, really informative thanks. I have a slight twist on the issue though.

I have had a personal loan for coming up for 10 years (only 7 months left to pay). In that time I was made bankrupt due to the recession crash 6 years ago which left me out of work for approximately a year. Because the loan and mortgage was secured against the house which was in negative equity at the time I continued to pay these as I wanted to try to keep the house if possible (which I have done). However I did claim on the PPI on the loan for a few months (4 No. I think) until I was able to find a new job where I then continued to pay.

I have however just had a letter copied to me from my loan company to the insolvency company dealing with my bankruptcy saying that they are paying a PPI reclaim to them from my loan. The money fair enough will go to my creditors, however stated therein they are adjusting the insolvency company’s clients remaining monthly payments (I presume that means me) up by circa £400 per month as they have put the account to where it would have been if no PPI was taken.

Is there anything I can do as firstly I did not reclaim the PPI the insolvency Company did and secondly I cannot afford this increase, effectively my loan has just increased by circa 2.5k? Should the loan it was incurred on not be offset first?

Cheers

alastairq · 13 January 2015 at 7:09PM

Because of the Bankruptcy, the right to claim any or all PPI compensation vested with the Official Receiver.

The Loan company would be entitled to recover any PPI payments made to you, after the date of your BR petition...from you.

If the repayment schedule is excessive, why not contact your loan company, to negotiate a more appropriate payment schedule?

{bear in mind, if the property is in negative equity still, then the loan company, as the second charge, would receive nothing if you ceased payment of the mortgage, and the house was re-possessed. This would be the case as, once the house is sold, the shortfall of required equity would fall into your Bankruptcy, as it becomes unsecured....and the Loan company would receive little or nothing as a return.}

Ensure you do not sign any sort of Deed of Assignment with the Loan company....!
They will be keen to ensure they can still pursue you for the loan, if the property were sold/re-possessed.

Yellabowley · 15 January 2015 at 2:03PM

TheGardener wrote: »

A PPI company are the last people I would take advice off - there is no real expense for them - its a punt - My understanding is that IF they were successful on your behalf, the bank themselves (as part of their checking process)would see that there has been a BR and send the cheque to the OR. The PPI company, as the claim was technically successful, would still want their cut of the payout - the problem may be that they would come to you for their cut even though the OR might keep the payout in full...Its a win-win for the PPI company ...

Also see post #2 by Fermi here http://forums.moneysavingexpert.com/showthread.php?t=3461629

Following this advice I contacted the company we are using to claim PPI. They have clarified their position. In the event of a successful claim they refer any monies to the official receivers. They have said that they have had mixed responses in the past. Sometimes the OR wants to take all of the cash. Other times they have given authorisation to pass the money back to the bankrupt. The PPI claims company have said that they take risks with every client. The initial risk is that they get nothing back. With people who have gone bankrupt there is an extra risk that the OR will take the money even if they are successful. They have had enough success in the past to make it a risk worth taking. They would never pursue a client for a share of money that has gone to the receiver.

We have a claim currently against MBNA so I will let you know what happens with that.

Nolo777 · 15 January 2015 at 2:27PM

Hi All

I was declared bankrupt October 2010 and released a year,however I have just been told by a third party I can claim back PPI from a closed bank account prior to the bankruptcy and the loan was paid off in full and never part of the bankruptcy estate..... Is this true

fermi · 15 January 2015 at 2:40PM

IMPORTANT: IF YOU ARE APPROACHED BY A COMPANY THAT TELLS YOU THAT YOU CAN CLAIM AND KEEP REFUNDS ONCE YOU ARE DISCHARGED, THIS IS A LIE.

Please report any such companies to the Ministry of Justice and the Insolvency Service, and send them copies of any paperwork making these false claims

THIS applies even if the account/policy was paid off before your bankruptcy.

PPI Claims after bankruptcy

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