Claiming back PPI after bankruptcy.

[DorsetStrider]

Hiya all.

 

I think I know the answer to this but on the off chance I'm wrong I thought I'd ask you knowledgeable lot.

 

Today I received a phone call from a company (I forget thier name) asking if I'd been sold PPI with a loan. I have. I told them thou that the loan and PPI was taken out before I was declared bankrupt about 5 years ago. They seemed to think I could still claim. "Just send us lots of money and we will send you the forms" (unfortunately for them I'm not that stupid, although it is close ;O)

 

Anyway I thought I'd find out a little more about this. In your opinion would I be able to make a claim despite the fact that I've since been declared bankrupt? Would value your thoughts/opinions.

[di0430]

Hi there

 

You done the right thing.;-)

 

And to what I know of, you can still make a reclaim on the mis sold PPI, it does not matter I don't think if after bankruptcy.

 

Check out this out below, good luck.

And as you know always have a go yourself.;-)

 

Can I Keep PPI Money Claimed Back Whilst In Bankruptcy? | Bankruptcy Information UK

[Vanderpelt]

Actually as someone who works in the system and having dealt with this recently at work the money was claimed for the bankruptcy estate, this was after the discharge of the peoples bankruptcy. I am not sure that the advice that has been given is correct.

 

The money was claimed on the basis that a right of action (which is any event that could potential go to court) has to be resolved by the Trustee in bankruptcy before it can be continued by the bankrupt.

 

The issue with PPI is that technically under the IA86 the creditor has the right of set off, therefore in most cases the OR doesnt bother as it would simply be a change of a numbers, and a bureauctic , but lately this is being tested.

 

I will check with some people at work, but it might be a waste of time in all.

[DorsetStrider]

I think you might be right about it being a waste of time Vanderpelt but I (and I'm sure anyone else looking into this on here in future) would apprieciate it if you could find out some more details.

 

Many thanks.

[DorsetStrider]

Hi Vanderpelt.

I was just wondering if you have been able to check this out with anyone at work yet?

 

Many thanks

[Vanderpelt]

i have had a chance to talk to some people at work and once you go bankrupt, the claim against the PPI vest (in essence belongs to) to the Trustee. The reasoning for this is that the PPI is considered a right of action and as such if trustee does not follow it through it remains with him.

 

The main reason that these were not done is a section in the Insolvency Act (which number escapes me at the second and my copy is in a box somewhere), but it is titled Mutual Credits and Debits. Basically this is if the creditor is owed £10k, and owes the bankrupt £2k they claim in the bankruptcy for £8k. The main arguement has been if there was a case for a further £3k in a ppi, they would simply apply it against the amount owed, and the Trustee would have gained no funds for the creditors. So basically it was seen as a paper exercise.

 

In the last 6 months the Insolvency Service has decided to test the waters, by arguing that the PPI as an insurance product is seperate (or should be) from the loan itself, therefore the mutual credit and debit, should not apply. We have managed to get quite a bit of money for some creditors.

 

So to answer the question, if you have gone bankrupt, then any PPI claim should normally pay into your bankruptcy, even if you have been discharged (as has happened to one of mine), there is a chance that the INSS will not know, but it would seem to be a waste of your time.

 

Hope that helps

 

Van

[Genisis]

I can answer this one if your PPI claims are pre bankrupcy don't bother as they will go straight to the insolvency service. If you have any post bankrupcy you may claim these back in your own right. Be aware of agents as they may not ask the right questions and you could end up owing them money

 

 

Hiya all.

 

I think I know the answer to this but on the off chance I'm wrong I thought I'd ask you knowledgeable lot.

 

Today I received a phone call from a company (I forget thier name) asking if I'd been sold PPI with a loan. I have. I told them thou that the loan and PPI was taken out before I was declared bankrupt about 5 years ago. They seemed to think I could still claim. "Just send us lots of money and we will send you the forms" (unfortunately for them I'm not that stupid, although it is close ;O)

 

Anyway I thought I'd find out a little more about this. In your opinion would I be able to make a claim despite the fact that I've since been declared bankrupt? Would value your thoughts/opinions.

[tianney]

Hi I have had the same happen to me and the monies have gone to the OR and distributed to my creditors however I have a question I was made bankrupt not my spouse, my spouse has paid half of any payments that I made, so as she has not been made bankrupt is she entitled to her half of the ppi claim it runs into several thousand so any help would be apreciated. Also if my spouse was entitled to half of the monies will she have to chase the OR for this payment. Thanks for any advice.

[ims21]

Hi I have had the same happen to me and the monies have gone to the OR and distributed to my creditors however I have a question I was made bankrupt not my spouse, my spouse has paid half of any payments that I made, so as she has not been made bankrupt is she entitled to her half of the ppi claim it runs into several thousand so any help would be apreciated. Also if my spouse was entitled to half of the monies will she have to chase the OR for this payment. Thanks for any advice.

 

Were the loans/card credit agreements in joint names?

[tianney]

They were loans all in my name but were paid for from our joint account.

[ims21]

If the agreements are yours alone then any refunds are yours which then go to the OR.

 

If the agreements had been joint then it would have been a different matter.

[tianney]

Thanks for that info is this the case even if the payments were made from a joint account thanks.

[ims21]

Yes, sadly it is.

[Dontstress]

Hi, I have a related question: If I have a possible PPI claim for a 2nd mortgage I took out AND paid off with the sale of my house, prior to being declared bankrupt (so not included) - can/should I pursue this claim?

[ims21]

Hi, I have a related question: If I have a possible PPI claim for a 2nd mortgage I took out AND paid off with the sale of my house, prior to being declared bankrupt (so not included) - can/should I pursue this claim?

 

Very quick answer is yes.

[Dontstress]

Excellent. Many thanks.

[Miaspa 2010]

Very quick answer is yes.

 

But doesn't any refund recieved belong to the OR as the PPI payment was prior to the bankruptcy?

[ims21]

But doesn't any refund recieved belong to the OR as the PPI payment was prior to the bankruptcy?

 

If undischarged then the OR needs to be advised. If discharged then the claimant should get the money.

[Miaspa 2010]

If undischarged then the OR needs to be advised. If discharged then the claimant should get the money.

 

I'm discharged and the OR received the full claim, on a loan I had repaid in 2007, bankrupt in 2010. The bank I recived the claim from had no amounts owed in my Bankruptcy.

[Dontstress]

Surely that cannot be legal? If the bank has nothing to do with the bankruptcy and the amount is due under UK law, then how can the OR take it - and for what - to pay non-related creditors??

[ims21]

Whether right or wrong, there have been instances where claimants post bankruptcy have received the refund. The OR should be consulted with anything like this.

 

More reading here which should clarify what the position should be

 

http://www.bis.gov.uk/insolvency/personal-insolvency/ppi-mis-selling-claims-and-bankruptcy

[Dontstress]

According to the BIS guidelines the OR does indeed have a right to the funds if he/she deems it so. And there doesn't appear to be a timeline when such ownership might be relinquished! So, once bankrupt the OR owns you for life??? I truly hope not!

[Miaspa 2010]

According to the BIS guidelines the OR does indeed have a right to the funds if he/she deems it so. And there doesn't appear to be a timeline when such ownership might be relinquished! So, once bankrupt the OR owns you for life??? I truly hope not!

 

Yep they do but if my 3rd claim pays out all my debts will cleared and the OR will owe me money, will just take a while for the OR to release the funds. Hopefully!

[Dontstress]

Just to clarify my last statement - I am aware of course that after a certain period of time it wouldn't be possible to claim for such things anyway and thus the problem of applying for any recompense from before one's bankruptcy goes away!

[Dontstress]

It's all relative though "Miaspa 2010". Your theory only works if your claim exceeds the amount of debt with which you entered into bankruptcy! Sadly not in my case.