# Receiving compensation - but after bankruptcy discharge



## zxcvbnm (14 Jun 2018)

Does anyone know what happens if you receive a compensation payment - but after being discharged from bankruptcy.

Normally any windfalls such as winning the lottery are yours to keep once discharged from bankruptcy - even if involved in a Income payments order for another 2 year.
But in this instance due to  the fact that the compensation is for an event that occurred before BR, albeit with the windfall received after BR, what happens?
(Also - may I add the bank involved was the sole creditor in BR.)

I do know that the assignee is treating compensations for redress different to normal windfalls due to the unique nature of the circumstance. (A family member received a payment during BR and was allowed keep 70% of it)

Also - I've seen the below link whereby it was split 70/30 where the assignee gets 30%. But it is not clear if this is when those individuals were in their bankruptcy year when they received their compensation - or if they were out of BR. My query is for when you receive the compensation after being discharged from BR.

https://www.irishtimes.com/business...tomers-awarded-tracker-compensation-1.2734141

And as an additional query - the above article suggests that they got compensation for being declared BR. IS that a legal precedent there meaning that all BR people who got tracker redress should also be entitled to additional compensation on the basis they went BR?


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## Jim Stafford (15 Jun 2018)

Technically, 100% of the redress amount should go to the OA, as the "breach of contract" claim existed at the beginning of the bankruptcy.

in respect of Compensation, the OA adopted a _"fair_" approach and allocated 70% towards the "Personal Injury" component. Personal Injury proceeds belong to the bankrupt and not the OA.

if the breach of contract was the major contributory cause to a person's bankruptcy, then the compensation should reflect that. If the bank was your sole creditor, the big question then is why did you go bankrupt and not do a PIA?  if your PIP advised you (and if he was correct in his advice!) that a PIA was unsustainable, then I could not see how you would be entitled to additional compensation.

Jim Stafford


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## zxcvbnm (15 Jun 2018)

Thanks Jim.

And as a final query- what if compensation is received before BR. Does all of it have to be given up in BR? Or would you be allowed keep 70% of said funds from compensation seeing as that is what happens in BR anyway?


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