PPI claim if bankrupt

[brownsugar7230]

Hi guys just after some advice for a friend of mines.She recently had a successful claim of bankruptcy. the debt was a number of credit cards,store cards and loans. can she make a PPI claim on these cards if ppi was misold on any of these even tho she now bankrupt.
cheers guys

[leclerc]

Re: PPI claim if bankrupt

She can but all monies would be owed to the Official receiver which might help merely in reducing the overall indebtedness that they have had depending on how much and how long ago the debts were. They might have a potential to pay off the bankruptcy but that will all depend on the amounts of PPI involved. Please do not get yours or their hopes up as it may not be worth even making a claim.

[brownsugar7230]

Re: PPI claim if bankrupt

Thanks this really helps

[dazzlar3]

Re: PPI claim if bankrupt

I went through a bankruptcy and I had credit cards, store cards etc etc...... I made my claims once I had been discharged from my bankruptcy 6 months later and up to now have had no problems....I claimed back from my banks for ppi, claimed back my credit cards also. Once discharged you no longer owe the debt but I have claimed back thousands in charges and ppi miss selling. I still have several more to chase ! the ones I have done up to now were companies that supplied paperwork on their websites.

[roonaldo]

Re: PPI claim if bankrupt

I went through a bankruptcy and I had credit cards, store cards etc etc...... I made my claims once I had been discharged from my bankruptcy 6 months later and up to now have had no problems....I claimed back from my banks for ppi, claimed back my credit cards also. Once discharged you no longer owe the debt but I have claimed back thousands in charges and ppi miss selling. I still have several more to chase ! the ones I have done up to now were companies that supplied paperwork on their websites.

you were very lucky as you had no entitlement to it anymore being bankrupt even if discharged. they probably hadnt done their bankruptcy checks properly. This is from the insolvency website. I would imagine you could get into heeps of trouble if this comes to light.

Payment protection insurance mis-selling claims and bankruptcy

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Payment protection insurance (PPI) mis-selling claims and bankruptcy
PPI mis-selling guidelines
Following the recent publication by the Financial Services Authority of proposed guidelines for firms that sold PPI policies and their contact with customers who may have been mis-sold a policy, but have yet to complain, the following information may be useful to persons who became bankrupt after the sale of a PPI policy.
A PPI mis-selling claim: a bankruptcy asset
Following provisions of the Insolvency Act 1986, The Insolvency Service takes the view that if a PPI policy was mis-sold before the date of an individual’s bankruptcy, any claim relating to the alleged mis-selling of the policy is owned by the official receiver or trustee of the bankruptcy estate, not the individual to whom the policy was sold.
Discharge from bankruptcy does not alter the position
Discharge from bankruptcy does not alter this position. Discharge does not operate to transfer unrealised assets, including PPI mis-selling claims, back to the individual.
Considering a PPI mis-selling claim: refer to the official receiver or trustee
If a (former) bankrupt considers that a PPI policy was mis-sold, they should not attempt to pursue a mis-selling claim without reference to the official receiver or trustee.
If a claim has already been made, the official receiver or trustee should be informed of the claim and the person against whom the claim is being made should be informed of the bankruptcy
Use of claims management companies
The Insolvency Service is aware that some (former) bankrupts have used claims management companies to pursue PPI mis-selling claims for them. If these services are used after the date of the bankruptcy order, it is possible that the individual will remain responsible for all or part of the commission charged if an award is paid to the official receiver or trustee. This may be because the amount of the commission is challenged by the trustee or if the firm against which the award is made is a creditor in the bankruptcy and exercises a right to set-off the award against its claim in the bankruptcy. This could result in no payment being made from which the commission could be paid.
As such, care should be taken before acting in this way.