So basically former trustee can keep this funds for a very long time.

So might be good for former debtors hopefully it’s left as it is

Not to confuse matters Wildchild - however there has been a similar argument whether a sequestration can be reopened by a trustee.

There is the mechanism for this to happen by a simple note to court and there have been a number of older sequestration cases being reopened.

The legislation simply states that when an individual is discharged from their debt, it simple means they are no longer responsible for payment - creditors under sequestration would arguably be able to set-off any PPI amounts as the offer of composition and thereafter discharge of debt under trust deeds is not applicable.

The sheriff at Glasgow court has raised a number of valid points on whether agreeing to reopen a sequestration on application of the trustee.

It must be in the financial interest of the creditor and has suggested other more cost effective ways of paying creditors such as an action of Multiple Poinding.

This again demonstrates the complexities of the insolvency process and PPI - they are far from straightforward.

The Mond case simply is dealing with the case of a trust deed case not a sequestration.

Thanks for reply. What is going to happen to the already thousands of people that have had ppi after discharge as I am sure loads that had a old trust deed would have received ppi monies when banks used to send it to the person as opposed to the formertrusteee

Wildchild

I am not sure I get what you are saying ?

If the creditor has sent the funds to the client post discharge then the former trustee will not be attempting to reopen the case ? the reason being, it wouldn't be cost effective as the funds would have been spent.

Hope this helps

Hi someone I know had ppi sent direct a few years ago after being discharged for a few years. Now they been sent some more and it’s went to the trustee. Can the trustee now make a claim on the previous amount that bank sent to him few years ago

Highly unlikely.

Seems pretty unlikely to me as well.