I have claimed for the mis-selling of PPI from Barclays. They said I was mis-sold and that the money would go towards my bankruptcy. I went bankrupt six years ago. Can they do that?
Yes they can, as PPI taken on any loan prior to the bankruptcy is known as a ‘bankruptcy asset’ and becomes part of the ‘Bankruptcy Estate’. This is not the case if the loan was taken after the bankruptcy, in the last six years.
Barclays in particular make cheques payable to ‘The Trustee of … ‘ which means only the trustee or Official Receiver can accept it. However, 95% of the banks don’t do this and we know of plenty of cases where the person simply banked the money. It is most unlikely that the Official Receiver would find out about it unless you told him.
Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page. Please note, court appearances are no longer required for bankruptcy as everything is processed online.