Dear Trustee - Post Office historical shortfall scheme

Dear Trustee

The purpose of this letter is to draw your attention to guidance recently published by the Insolvency Service in relation to the Post Office historical shortfall scheme. 

The Insolvency Service are liaising with the Accountant in Bankruptcy to identify any cases were a former post master has been sequestrated under Scottish bankruptcy legislation. We anticipate that the number of cases affected is very low. In any case which is affected by a payment of compensation under the scheme, the Accountant in Bankruptcy considers that the same principles as set out in the Insolvency Service’s guidance should be applied to Scottish cases.

The general principle is that that compensation for financial losses vests in the bankruptcy estate and compensation awarded for personal loss is due to the individual. However, given the particular circumstances in these cases, trustees may consider that they would wish to also waive claims to distribution from compensation payments for financial loss. If so, trustees should follow the usual approach of liaising with creditors to establish if they would support such an approach.

Yours faithfully

Simon Roberts
Head of Operation Policy and Compliance