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Discussion and questions about what to expect when your bankruptcy is finished
By DavidEll
Hi I wonder if you can clarify this for me pls. I was bankrupt may 2010 and discharged may 2011. I am paying an iPo for 36months which will finish in Sept 13. I recently recieved a cheque from a PPI account which I paid off in 2006 but trustee has said I have to pay it back to them? Is this correct as I had no idea I could claim this until feb 12?
By Carla
Hi there David and welcome

As far as I am aware if you have been bankrupt in the past then any subsequent PPI claims you make and compensation you receive is taken by the OR. I think this is even the case if the loan you are claiming against was not included in the bankruptcy.
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By Hayden
Hello David

Carla is absolutely right. If you have been bankrupt in the past and now claim for PPI any compensation you are due will probably be paid directly to the OR even if the claim is against a debt not involved in your bankruptcy.

Having said that if you make a claim and you are lucky enough to receive the money directly and do not tell your OR, then they are unlikely to find out about it so you will probably get away with keeping it. However this is more likely to happen if you do not have an income payment order.
Hi David

Once you have declared bankruptcy, any compensation you receive for PPI on any loan taken before your bankruptcy (included or not) should be paid to the official receiver under the unrealised asset rule. Banks are getting more and more wise to this and will generally pay any compensation they owe you directly to your OR.

If you are lucky enough to receive any payment directly and you are discharged already then it is up to you whether you make this known to the OR or not. If you chose not to there is a good chance they will never find out but I would not spend any of it until your IPO was completed and your regular contact with the OR over (just in case).