Reclaiming after bankruptcy

[vossy]

Right first off this is for a mate, I have been trying to help him reclaim some of his PPI he paid before he went bankrupt.

Now he was made bankrupt by HMRC in 2001 and was discharged a year later.

He had a letter this week from LloydsTSB (yep ) saying that they have come to a figure of about 4k for repayment, however because he owed them money when he went bankrupt they will take the money off what he owes or owed them at that time.

Now, wouldn't LTSB have already written the money off that he did owe at the time of bankruptcy or do LTSB have a legitimate argument here?

I have no idea what to tell him next apart from to keep arguing with them and force it the FOS for a final decision.

[Riz]

Re: Reclaiming after bankruptcy

http://www.insolvencydirect.bis.gov.....htm#31.9.208a

31.9.208a Right of set-off and PPI claims (added August 2011)

Where a financial institution offering compensation for mis-selling of PPI (see paragraph 31.9.31b) also holds a claim in the bankruptcy proceedings, the financial institution is entitled to apply set-off [note 14a].

If the financial institution has paid out or is offering compensation without having acknowledged their right to apply set-off, the official receiver, acting as trustee, should confirm with the financial institution that they wish to waive their statutory right of set-off. The official receiver might also stipulate that where no reply is received within 28-days he/she will interpret this as an agreement that set-off is waived.

Where the financial institution has a secured debt, the statutory right of set-off only applies in respect of any unsecured shortfall.

Sorry.

[SXGuy]

Re: Reclaiming after bankruptcy

Hang on! that applies to PRE Discharge.

im 99& certain you CANNOT claim money owed after discharge of bankruptcy, that only applys during bankruptcy.

While i think Lloyds are talking shit. I do have my concerns about claiming PPI from a debt written off by BR. Techically, that either got wrote off with it, or should have been used to repay debts during BR.

So on weighing it up, in my opinion, neither reducing the debt, or receiving the pay out is right.

[ken100464]

Re: Reclaiming after bankruptcy

No authority on this but have read many threads that the money goes to the OR if you win as something (not sure what) happens to any claims you have. Maybe the right to claim goes to the OR????

Anyway have read many times on other sites that its a waste of time claimimg for ex BR's.

Its only ok if you claiming for stuff after the BR ended.

But like I said just what I have read.

[vossy]

Re: Reclaiming after bankruptcy

Thanks everyone, he has had a couple of successes but they were paid before he went BR, looks like he will be having baked beans for crimbo dinner this year

[Riz]

Re: Reclaiming after bankruptcy

PPI can be reclaimed post BR for pre-BR debts. The right of action DOES survive the BR

Problem is that:

(1) The right of action and to receive the monies vests in the OR/trustee, not you. So you are not entitled to receive the proceeds.

The insolvency service was looking to do pilot schemes reclaiming PPI to the benefit of bankrupts estates and the IS' fees. Not much seemed to come of that, although the AIB in Scotland has recovered moderate sums in a similar scheme.

(2) As previously described, BR creditors also retain the right to exercise their set off. Even once the bankruptcy is discharged. It's is the debtors liability that is discharged, not the entire existence of the debt. Creditors can still set off against PPI.