bankruptcy and ppi

[meellis]

I was made bankrupt in sep 2014 and discharged a year later. I had made some claims for mis-sold ppi before they changed the rules on bankrupts claiming so when that rule change came in I didn't bother anymore. I thought if the ppi was going straight to the estate then the estate can do the leg work. I have received final accounts of how the estate was dealt with. Now I have received an offer of compensation from Barclays on an upheld claim but it says they will make the cheque payable to the trustee unless I tell them I am no longer subject to bankruptcy. now I know I should contact the trustee on this issue but I am wondering about other viewpoints, the trustees are private companies so are hardly going to turn it away or openly admit whether it is due to them but they have done the final accounts and informed me that the bankruptcy has been dealt with.

[DebtSanity]

Re: bankruptcy and ppi

Hi Meelis. I've probably not got good news for you here but I will work my way through it.

There has been much discussion about claims like PPI payments within the Insolvency profession. The discussion generally has circulated around the following points of law:

1. Whether a PPI claim constitutes an asset at the date of bankruptcy.
2. Whether in fact it is claimable as an after acquired asset, often known in these circumstances as a "windfall".

The conclusion was quite blunt.

It is that the claim itself vests in the trustee as at the date of bankruptcy. In other words, it should have been declared as an asset by you. I think in these circumstances it is called a Right of Action. Now it is unclear to me from your post whether you declared it or not. That is academic. It appears to be an asset claimable by the trustee.

This post does not constitute legal advice but a mere pointer as to how this might be viewed by your Trustee in bankruptcy.

A quick edit now...

I should add something about this from the Trustee's perspective. If he has finalised his administration of your case it's a bit of nuisance to be honest but then I don't know the quantum of your claim. Now that he has obtained his release it might need to be paid to the Official Receiver instead.