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Max Lowry
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Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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I was bankrupt in 2011, discharged in 2012. I've recently found

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I was bankrupt in 2011, discharged in 2012. I've recently found out I'm entitled to ppi from pre bankruptcy era. What should happen to the proceeds.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. Could you please confirm 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 3 years ago.

Yes to both questions

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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