Welcome to the forum tommy10.

It's normal for sums of money like this from PPI to be used to help cover the costs of a bankruptcy and to try to repay some of what is owed to the creditors.

PPI claims would, I assume, have vested in the trustee when you became bankrupt.

Presumably you were discharged some time ago?

yes discharged 18 months ago the stupid part of this is my main creditor was lloyds and it is them that sent the ppi paymenti read somewhere that the trustee would ask for only what was left of the ipa 3 payments and release the rest of the cash

Hi Tommy10,

The PPI compensation claim would "vest" in your Trustee even although you have already been discharged as it was an asset that existed at the point you were declared bankrupt. Your Trustee may well have been in the process of investigating this and as is common the banks make a payment directly to the individual and not the Trustee if there is a successful claim.

Your income payment agreement goes towards the cost of administering your Sequestration and to also return a dividend to your creditors. I think it would be unlikely that your Trustee would only seek the remaining payments of the IPA. Your best to check with your Trustee but you need to be prepared for the scenario that the Trustee retains all of this money.