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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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I have been discharged from Bankruptcy, but have been told

Resolved Question:

I have been discharged from Bankruptcy, but have been told that if I have a successful claim against my bank for PPI. that the money will go to the Trustees of my Bankruptcy as I have not had a letter releasing me from Trustee interest in my finances.
Submitted: 2 years ago.
Category: Law
Expert:  Max Lowry replied 2 years ago.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. Could you please tell me do the PPI monies relate to a financial product which was in existence before bankruptcy? Also, was there a debt on this financial product which was wiped off in the bankruptcy? Thanks
Customer: replied 2 years ago.

Yes it was related to a business loan long before the bankruptcy bit was not involved in the bankruptcy

Expert:  Max Lowry replied 2 years ago.
Thank kindly for the confirmation. The legal position is that the Official Receiver/your Trustee in Bankruptcy is entitled to keep the money which is recovered from a PPI award. The government decided a few years ago that such awards must fall in the bankruptcy if they existed before the onset of bankruptcy. The award is treated as a windfall in the bankruptcy (insolvency legislation). As the financial product was in existence before bankruptcy and the award relates to that product it follows that it must stay in the bankruptcy. Discharge of bankruptcy does not alter the position.
Please let me know if I can clarify anything.
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