PPI claim went to Insolvency Practitioner

ChrisM1969
ChrisM1969 Posts: 3 Newbie
in Reclaim PPI & other insurance
Hi, I've received a letter from Lloyds upholding a PPI complaint however, they've stated that "my 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'm not IN any arrangement any more? I made myself bankrupt in 2009 and was discharged from bankruptcy in 2010. I thought debts were dissolved if you've been declared bankrupt? If not, surely all ex-bankrupts would be chased for their money forever more? Bit of a connundrum, please help :)

Comments

  • -taff
    -taff Posts: 14,480 Forumite
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    Not really a conundrum.A bankruptcy draws a line in the sand between you and your debts. By complaining about your PPI you are attempting to re draw the line in your favour.
    A bankrupt does not have the right to complain about any pre baknruptcy asset, that belongs to the OR. PPI is a pre bankruptcy asset.
    Shampoo? No thanks, I'll have real poo...
  • Nasqueron
    Nasqueron Posts: 8,784 Forumite
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    As taff has helpfully explained, while an IVA / bankruptcy kills your debts, you cannot profit from pre-bankruptcy assets, they agree not to chase you but that doesn't mean you don't owe the money. The bank can offset any refund against old unpaid debts
  • ChrisM1969
    ChrisM1969 Posts: 3 Newbie
    Thanks guys...hadn't thought of it like that....just got a bit panicky when I saw 'me' and the insolvency practioner in the same sentence, it was an awful time and lead to severe anxiety issues
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    ChrisM1969 wrote: »
    I thought debts were dissolved if you've been declared bankrupt? If not, surely all ex-bankrupts would be chased for their money forever more?
    No conundrum.
    The debts are not "dissolved",they still exist but your creditors simply no longer have any ability to chase you for payment. In the exact same way, though, bankrupts cannot chase the assets which by rights belong to your former creditors. PPI redress is very much counted as such a pre-bankruptcy asset. This is the situation forevermore, so it doesn't matter how long ago your bankruptcy was discharged. You do not even retain the right to complain about this PPI, that lies with the Official Receiver.
    Sorry.
  • ChrisM1969
    ChrisM1969 Posts: 3 Newbie
    Wasn't thinking of complaining, just couldn't figure out why....seems so simple now :)
  • -taff
    -taff Posts: 14,480 Forumite
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    What money meant by complaining is as follows.
    A lot of people are under the impression they are making a claim for the refund of PPI.
    It doesn't work like that. Basically, they are making a complaint about the missale of PPI, not a claim. Hence the OR has the right to complain about the PPI, not you.
    Hope that's clearer :)
    Shampoo? No thanks, I'll have real poo...
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    ChrisM1969 wrote: »
    Wasn't thinking of complaining
    Whether you know so or not, you already effectively made a complaint when you "claimed" PPI.
    As already explained, you had no right, as a bankrupt, to do this.

    Sorry again.

    Odd that you knew already you'd made a complaint in post #1?
    ChrisM1969 wrote: »
    Hi, I've received a letter from Lloyds upholding a PPI complaint
  • -taff
    -taff Posts: 14,480 Forumite
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    I think the OP understood your post as complaining about not having recived the PI prsonally, hence my explanation.
    Shampoo? No thanks, I'll have real poo...
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