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.
Bankruptcy UK has noticed a marked increase recently in the number of clients returning with post bankruptcy issues, following an apparent ‘tightening up’ of procedures by Official Receivers i.e. the Insolvency Service.
It appears that clients are now routinely receiving Income Payments Agreements (IPAs) despite accurate Income and Expenditure documents clearly showing that there is no surplus income. This is a worrying development and now, more than ever, the Public needs support in this critical area.
An Income Payments Agreement is an arrangement designed to return money to the creditors over a 36 month period. Therefore, even a ‘modest’ IPA of say £75 per month ends up costing £2,700 over the three year period, something that would be a burden if not warranted.
Bankruptcy UK has set up a dedicated team to resolve these issues and has achieved success in challenging and overturning the IPA decisions levied by the Official Receiver’s Office. This is unique in the Insolvency Services sector, as most companies simply produce the paperwork and ‘wave the client goodbye’.
Another area of concern is motor vehicles. The allowable limit has reduced from £2000 to £1000 and even then it is far from certain that the vehicle will be allowed. In a recent case, a married couple had a vehicle worth £800 attached on the grounds that the husband had a company car.
The fact that the husband was away on business four days a week and there were four young children to shuttle around did not impress the Official Receiver. Fortunately, Bankruptcy UK challenged the decision and had it overturned.
It appears that there has been some type of directive to Official Receivers to ‘crack down’ on bankrupts and to obtain a monthly payment at all costs. Of course, no one will admit to this, but this is quite clearly what is happening. Professional assistance with bankruptcy is therefore now more important than ever.