# Bankrupcy and receiving money for tracker redress



## michaelg (3 Sep 2019)

Can a bankrupt keep any money they receive as a tracker redress payment or does it have to go to the OA ? Even if its a very small amount .
Thanks


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## Jim Stafford (11 Sep 2019)

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 has 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 (20 Sep 2019)

As some additional info on this, my sister went bankrupt and also received a very significant redress payment from AIB after sale of properties.
As Jim said, AIB were entitled to keep 30% of it, but allowed her keep it all as an act of good faith. (She was waiting for months for them to make a call on it and eventually they did). To say we were surprised is an understatement.

Although on reflection, I'm assuming the reasoning is they realised her bankruptcy was entirely due to her being overcharged (which was clearly the case) So it makes no sense for them to compensate her - only to receive the compensation back as part of an insolvency. That's not much of a compensation !!
So had she pursued it through the courts i really cannot see how a court would allow AIB keep any of it given the cutcumstances.


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