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  • FIRST POST
    • didgeridoooo
    • By didgeridoooo 9th Jul 18, 10:58 AM
    • 16Posts
    • 8Thanks
    didgeridoooo
    PPI for past bankrupt person
    • #1
    • 9th Jul 18, 10:58 AM
    PPI for past bankrupt person 9th Jul 18 at 10:58 AM
    Hi,

    I am wondering if anyone knows whether someone who has been bankrupt (6-8 years ago) can claim back PPI? (fully discharged bankrupt)
Page 1
    • zx81
    • By zx81 9th Jul 18, 11:01 AM
    • 18,617 Posts
    • 19,870 Thanks
    zx81
    • #2
    • 9th Jul 18, 11:01 AM
    • #2
    • 9th Jul 18, 11:01 AM
    Not if the PPI was pre bankruptcy.
    • didgeridoooo
    • By didgeridoooo 9th Jul 18, 11:03 AM
    • 16 Posts
    • 8 Thanks
    didgeridoooo
    • #3
    • 9th Jul 18, 11:03 AM
    • #3
    • 9th Jul 18, 11:03 AM
    Short and sweet, thanks.

    Care to say why not? What if they had loans, mortgages, credit cards which were paid off before they got into financial trouble? Surely that PPI might have been missold?
    • dunstonh
    • By dunstonh 9th Jul 18, 11:07 AM
    • 94,517 Posts
    • 62,466 Thanks
    dunstonh
    • #4
    • 9th Jul 18, 11:07 AM
    • #4
    • 9th Jul 18, 11:07 AM
    Care to say why not?
    If you complained and your complaint was upheld and redress payablew, it is classed as a pre-bankruptcy asset. So, the money goes to the OR.

    What if they had loans, mortgages, credit cards which were paid off before they got into financial trouble?
    Bankruptcy is a line in the sand. Before and After. It would be wrong for someone to benefit from bankruptcy when people have gone unpaid from it.

    Thankfully, the rules on this are quite clear and published on the Govt site covering bankrupts (and repeated on many other sites). If premiums were paid before bankruptcy you dont get the money.

    Surely that PPI might have been missold?
    it may well have been. And technically, a complaint could still be made but the money will go to the creditors that lost money through the bankrutpcy. That may well include the bank.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • didgeridoooo
    • By didgeridoooo 9th Jul 18, 11:25 AM
    • 16 Posts
    • 8 Thanks
    didgeridoooo
    • #5
    • 9th Jul 18, 11:25 AM
    • #5
    • 9th Jul 18, 11:25 AM
    Thank you Dunstonh. I was looking for specific advice about the rules, not moral opinions of right and wrong.

    "It would be wrong for someone to benefit from bankruptcy when people have gone unpaid from it."
    The definition of "wrong" is subjective, and since you don't know any specifics, I don't think you're in a position to make that judgement regardless. My point was, lets say someone paid years of mis-sold PPI and then paid back a mortgage arranged with Halifax. Done deal, Halifax got back every penny as well as the PPI payments. Halifax did nicely and made money, they did not lose any. Then some years later, they took out a Barclaycard, and using funds from that card they were victim to a 32 million ponzi scheme for which the offender is now serving an 8 year sentence. Barclaycard lost money as the creditor in the bankruptcy. (Right and wrong doesn't come into it, fraud is wrong, but it happens). Halifax lost nothing. Wouldn't a PPI claim against Halifax (if valid) be perfectly justified? Even if the returns from it went to Barclaycard, Halifax are still liable surely?


    Perhaps that explains a bit more, and perhaps it doesn't change anything as rules are rules, I am just trying to find out what the rules are, specifically and accurately.

    Thanks
    • dunstonh
    • By dunstonh 9th Jul 18, 11:38 AM
    • 94,517 Posts
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    dunstonh
    • #6
    • 9th Jul 18, 11:38 AM
    • #6
    • 9th Jul 18, 11:38 AM
    Thank you Dunstonh. I was looking for specific advice about the rules, not moral opinions of right and wrong.
    They are not opinions. They are the rules.

    The definition of "wrong" is subjective, and since you don't know any specifics, I don't think you're in a position to make that judgement regardless.
    I dont need to know the specifics. I posted what the rules are and why.

    My point was, lets say someone paid years of mis-sold PPI and then paid back a mortgage arranged with Halifax. Done deal, Halifax got back every penny as well as the PPI payments. Halifax did nicely and made money, they did not lose any.
    halifax got lucky then. Shame about the rest of the creditors that lost money.

    Wouldn't a PPI claim against Halifax (if valid) be perfectly justified?
    If you are willing to put in the effort so the creditors get some money they fair enough. However, that wasnt the question aksed earlier on this thread.

    Perhaps that explains a bit more, and perhaps it doesn't change anything as rules are rules, I am just trying to find out what the rules are, specifically and accurately.
    And you have been told them.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Moneyineptitude
    • By Moneyineptitude 9th Jul 18, 1:10 PM
    • 20,977 Posts
    • 11,743 Thanks
    Moneyineptitude
    • #7
    • 9th Jul 18, 1:10 PM
    • #7
    • 9th Jul 18, 1:10 PM
    I was looking for specific advice about the rules, not moral opinions of right and wrong.

    I am just trying to find out what the rules are, specifically and accurately.
    Originally posted by didgeridoooo
    There is no contradictory information, Bankrupts simply cannot ever benefit from PPI complaints since any redress is a pre-bankruptcy asset that belongs to the Official Receiver for re-distribution to former creditors. This remains the case forever, so being discharged is irrelevant

    Only in the (very unlikely) event that PPI was purchased AFTER bankruptcy would a PPI complaint be possible which would benefit the Bankrupt rather than the OR. As I said, very unlikely.

    The question is asked so often that there is a "sticky thread" on the Bankruptcy Board of this forum.

    For fuller details, I suggest you read it:
    https://forums.moneysavingexpert.com/showthread.php?t=3766585
    • Moneyineptitude
    • By Moneyineptitude 9th Jul 18, 1:31 PM
    • 20,977 Posts
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    Moneyineptitude
    • #8
    • 9th Jul 18, 1:31 PM
    • #8
    • 9th Jul 18, 1:31 PM
    I can now look into making sure any mis sold PPI is not benefited from by the originator of the sale. Good job my instinct told me not to believe the "No" out of hand.
    Originally posted by didgeridoooo
    Just to reiterate, it is up to the Official Receiver, not the Bankrupt, to chase such "opportunities".

    So the original answer at post #2 is correct.
    • Nasqueron
    • By Nasqueron 9th Jul 18, 1:36 PM
    • 5,465 Posts
    • 3,366 Thanks
    Nasqueron
    • #9
    • 9th Jul 18, 1:36 PM
    • #9
    • 9th Jul 18, 1:36 PM
    Simply having PPI, particularly MPPI, is not wrong, it is only an issue if miss-sold. If the policy covered you correctly I can't see why you'd think there was an issue at all.

    Any which way, you borrowed money, didn't pay it back, bankruptcy clears your debts but also means you cannot profit from refunds of pre-bankruptcy assets
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