I went bankrupt in 2007 and was discharged in 2008 (6 years ago). I’m thinking of claiming PPI on a loan I had before I went bankrupt – would I be still be able to claim or would my official receiver take the refund if I was entitled to one?
PPI taken on a loan before the bankruptcy is defined as a ‘bankruptcy asset’ and would go to the Official Receiver, to be distributed among the creditors included in the bankruptcy. A number of lenders make out cheque payments to ‘The Trustee of …’ which ensures that this happens, but we have heard of many cases where this prefix was not put on cheques and the recipients simply banked the cheque. Naughty, but what would you do? On a positive note, if you won the lottery the day after you were discharged from bankruptcy, you would keep the lot.
Feel free to call us with any further questions or for bankruptcy help on 01425 600129 or 07479 739139