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    • EJReader
    • By EJReader 12th Oct 18, 10:25 PM
    • 6Posts
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    EJReader
    Rbs ppi after paid off bankruptcy
    • #1
    • 12th Oct 18, 10:25 PM
    Rbs ppi after paid off bankruptcy 12th Oct 18 at 10:25 PM
    My husband put in a claim for ppi with rbs. We had an offer letter returned and between 2 were offered 7,500.

    We have just been told today that the repayment is in a backlog and are now extending by another 28 days.

    However really just looking for advice if any available on our situation. My husband was made bankrupt 10 years ago including these loans, however his mother passed within a month of this happening and due to the sale of her house, his insolvency practioner had approx 32000 to deal with 28000 worth of debts. Paying off his bankruptcy debts, although no monies were left so unsure if any redress was still due on any of the debts. Rbs was one of the last companies to claim their monies at the time. Does this mean we should still be in the position to receive this ppi offer or will the bankruptcy just make this offer null and void.

    When we called to enquire, rbs said it had passed the Iva check and was now at arrears?

    Thanks in advance.
Page 1
    • Moneyineptitude
    • By Moneyineptitude 12th Oct 18, 10:40 PM
    • 22,325 Posts
    • 11,906 Thanks
    Moneyineptitude
    • #2
    • 12th Oct 18, 10:40 PM
    • #2
    • 12th Oct 18, 10:40 PM
    will the bankruptcy just make this offer null and void.
    Originally posted by EJReader
    Bankrupts cannot receive PPI refunds.

    Any redress is classed as a pre-bankruptcy asset and belongs to the Official Receiver for redistribution to the former creditors.

    This question is asked so often it's a "sticky" thread on the Bankruptcy Board. Read here;
    https://forums.moneysavingexpert.com/showthread.php?t=3766585

    So you'll get none of this money and your complaint has been a waste of time.
    Sorry.
    • EJReader
    • By EJReader 13th Oct 18, 7:00 AM
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    EJReader
    • #3
    • 13th Oct 18, 7:00 AM
    • #3
    • 13th Oct 18, 7:00 AM
    Thought that might be the case.

    Do you know how that works with the fact we are sure all debt was cleared and that when we contacted the Iva practitioner they no longer had records of his case. I understand the part where it goes to the official receiver to be shared out to those who were still owed but what if nobody was owed where does the money then go?
    • -taff
    • By -taff 13th Oct 18, 7:52 AM
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    -taff
    • #4
    • 13th Oct 18, 7:52 AM
    • #4
    • 13th Oct 18, 7:52 AM
    Was your husband bankrupt or in an IVA?
    It depends on whether you paid back the full amount. If he was in an IVA he may not have paid everything back because of the waiver of interest or additional charges etc.

    If bankrupt, if the OR is satisfied he did pay everything back, he may get it back. If he didn't, they wil keep it for redistribution.
    • EJReader
    • By EJReader 13th Oct 18, 8:18 AM
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    EJReader
    • #5
    • 13th Oct 18, 8:18 AM
    • #5
    • 13th Oct 18, 8:18 AM
    Sorry yes he was bankrupt. It was the company that dealt with paying his debts we contacted. It wasn't reduced offers the companies were given to my husbands knowledge. The monies from sale of house were approx 5000 more than the debt, however as nothing was left we are unsure of the interest and additional interest charges may not have been paid in full.

    I suppose it's just a case of waiting it out to find out, thank you for your answers.
    • Moneyineptitude
    • By Moneyineptitude 13th Oct 18, 10:27 AM
    • 22,325 Posts
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    Moneyineptitude
    • #6
    • 13th Oct 18, 10:27 AM
    • #6
    • 13th Oct 18, 10:27 AM

    I suppose it's just a case of waiting it out to find out
    Originally posted by EJReader
    Bankruptcies are extremely rare in which the entirety of the debt owed is cleared.

    If you were in a position to pay off all your debt, why go bankrupt in the first place?

    I'm certain there will have been interest and charges written off as well as settlements reached which were less than the original debt.

    In addition, it was the Official Receiver, not your IVA company, who you should have checked with prior to complaint. Note that failure to disclose to the OR any payment you receive is an offence, but you can now expect the Bank to do that on your behalf. You can also be very certain that there will be a record of your bankruptcy. This is all explained clearly in the link I provided on post #2

    So expect nothing and you won't be disappointed.
    • -taff
    • By -taff 13th Oct 18, 10:42 AM
    • 8,489 Posts
    • 7,153 Thanks
    -taff
    • #7
    • 13th Oct 18, 10:42 AM
    • #7
    • 13th Oct 18, 10:42 AM
    f you were in a position to pay off all your debt, why go bankrupt in the first place? .
    Originally posted by Moneyineptitude

    \They weren't. As per first post, a family death meant they inherited the means to pay off the debts...
    • EJReader
    • By EJReader 13th Oct 18, 3:54 PM
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    EJReader
    • #8
    • 13th Oct 18, 3:54 PM
    • #8
    • 13th Oct 18, 3:54 PM
    Bankruptcy was his only solution and then a family death meant he inherited, changing his circumstances and ability to deal with debt.

    No dishonesty either as my husband was open with bank all along the process that he was bankrupt. Do not expect any money to come to us if there are any debts still against his name.
    • Nasqueron
    • By Nasqueron 13th Oct 18, 8:08 PM
    • 5,816 Posts
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    Nasqueron
    • #9
    • 13th Oct 18, 8:08 PM
    • #9
    • 13th Oct 18, 8:08 PM
    Read the link posted above from the bankruptcy forum, PPI from before this happened belongs to the OR, not you. If they happen to decide you get something then fine but it's likely even if you did clear the debts remaining there would have been money written off/interest frozen etc that the PPI can still be offset against
    • EJReader
    • By EJReader 13th Oct 18, 10:24 PM
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    EJReader
    I did read this forum. But thanks for pointing me towards it for a second time.
    • EJReader
    • By EJReader 20th Oct 18, 8:02 AM
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    EJReader
    Just to update first of 3 claims was received in full by cheque 2 days ago.
    • Nasqueron
    • By Nasqueron 20th Oct 18, 9:33 AM
    • 5,816 Posts
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    Nasqueron
    Please make sure you speak to the OR about the bankruptcy first. If you cash the cheque and the OR has records indicating some money is still owed they will come after you. If the OR says you can keep it, then you're fine.
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