A legal battle is under way over a bankrupt Angus woman’s £8,000 payout.
Elizabeth Lilian Mitchell, of Abbot Street, Arbroath, was declared bankrupt in June last year with debts of £6,000. Scotland’s insolvency service, Accountant in Bankruptcy, was appointed to examine her estate for assets.
It was discharged from the role in June this year with no dividend paid to creditors.
Ms Mitchell subsequently received £8,138 from Bank of Scotland as the result of a claim for being mis-sold payment protection insurance.
Accountant in Bankruptcy has made an application to Forfar Sheriff Court to be reappointed as a trustee to Ms Mitchell’s estate so funds can be redistributed to creditors.
Documents lodged by Accountant In Bankruptcy state: “The monies form part of the debtor’s estate and ought to have been realised and distributed among her creditors.
“The applicant seeks an order appointing her as trustee in order that monies received in respect of the mis-selling claim can be realised, used to pay the costs of the sequestration process and be distributed amongst the debtor’s creditors.”
