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Many customers of Petitions Direct have previously been through an insolvency process either an IVA or Bankruptcy. One of the main questions we get asked by our customers making a PPI reclaim is whether Bankruptcy or IVA will affect a PPI reclaim case?

The truth is that it can have an effect on if you receive any compensation back, If you are still insolvent then it is likely that you will not receive any compensation as all the earnings from PPI reclaims would be sent to the official receive like any other amounts you could receive during insolvency.

However if you have been discharged from an IVA or Bankruptcy then it currently seems there is no set rule for PPI reclaims after bankruptcy. Some of the possible factors include the policies of the creditor, the terms and conditions of the individual PPI policy and how the reclaim is approached. It is very difficult to state beforehand if a PPI claim will provide physical compensation if you have written off the original account it was attached to during insolvency.

If a creditor decides that money should not be rewarded directly to the customer, then the total of the PPI reclaim should be sent to the official receiver who can then decide the next course of action. Although no clear cut cases have occurred it is suspected that some creditors may be retaining these amounts. It is important to check if doing your own PPI reclaim that this money has been correctly transferred and not unlawfully retained by the original creditor.