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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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PPI awarded, by Halifax, which has been paid directly to Official

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PPI awarded, by Halifax, which has been paid directly to Official Receiver due to bankruptcy. However, PPI awarded 2014, bankpucy discharged 2010. Is this correct? Halifax has stated that Official Receiver should be contacted. Letters sent to Receiver have not been responded to.
Thank you,
***** *****.
This enquiry is on behalf of my husband ***** *****
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, the financial product was a credit card, in existence before the bankruptcy. There was a debt on this card included in the bankruptcy.

Thank kindly for the confirmation. The legal position is that the Official Receiver 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, I'm afraid, 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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