tad_admin Staff asked 7 years ago

I’m I still liable for compensation when I declered bankruptcy

2 Answers
answered 7 years ago

If you check with the Official Receiver (OR) they will be able to advise of any debts that are included, or will survive, your bankruptcy. As compensation can be awarded for different reasons, and some will survive a bankruptcy, the OR may not be able to categorically state this other than to say that a debt might not be released on discharge.

As an example compensation may have been paid out by the Motor Insurers’ Bureau and they are now are seeking to recover from the bankrupt. It would be up to Motor Insurers’ Bureau to argue the extent to which the claim related to personal injury and to consider whether they wanted to pursue a claim post discharge.


This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.

answered 7 years ago

If the compensation money you owe was a result of a civil matter then this debt will be cleared in bankruptcy. If however it was a result of a criminal matter then it is unlikely that the debt will be cleared in bankruptcy and will remain outstanding.

If you have any doubts please contact the Official Receiver who dealt with your case.

This question has been answered by CAP UK, a leading debt charity offering hope and a solution to anyone in debt.