No you can’t, as PPI taken on loans prior to the bankruptcy is classified as a ‘Bankruptcy Asset’ and forms part of the Bankruptcy Estate. The bank in question would therefore be obliged to make out any refund cheques to ‘The Trustee of xxxxxx’ and the recipient would forward the cheque to the Official Receiver or Trustee.
Having said that, we know of only one bank that actually makes out cheques in this manner – Barclays – and the rest of them merrily make out cheques to the individuals concerned. Unless the individual surrenders the payment, the OR (and the bank) will be blissfully unaware of what has transpired and we know of plenty of people who have claimed this way. Not that we approve of it, mind you.
‘Can I still claim PPI if I go bankrupt?’ is just one of the hundreds of questions we answer every year. Bankruptcy UK will guide you seamlessly through the bankruptcy process as we have been doing since 1998. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.