Hello milngavie1978.

Insolvency practitioners work under the law and also under guidance from their professional bodies.

The professional bodies have instructed them to look into whether PPI claims can help ensure that creditors of a trust deed get repaid more.

If you receive a windfall of pretty much any type during a trust deed it will usually have to be paid over to help repay more of what is owed to the creditors.

So by law even if i wanted to or not they have a legal obligation to claim any PPI?

Regards

It's not really a question or wanting to or not milngavie1978.

The real question is whether the PPI was missold.

If it was then your trustee will want to see that your creditors (as a whole) benefit from claiming it back.

If it wasn't then either no claim will be submitted, or the bank involved will be able to defend the claim.

Thank you. I received papers from my trust deed practitioner to claim for PPI. I have received a substantial offer and i was just wanting to confirm that all of this money i will be getting back will indeed all go to my creditors.

i was just wondering if i could have waited till after the trust deed and have claimed this or by law now my trust deed practitioner must do it while in a protected trust deed as it seems this substantial payment i have received will not effect the length or amount i pay for my trust deed.

Thanks you.

By law your trustee must gather in whatever funds are available for the benefit of your creditors as a whole. Therefore if there is a potential lump sum from a PPi reclaim then yes I am afraid they will have to seek for it to be collected in.