Car insurance

Flowerpot_2

fiveyearplan wrote: »

Oh I see! Well if you only have the one direct debit you could go first then have them all put into your account, then OH can go BR and open his own account and transfer his back to his own account. It shouldn't be as much effort as it sounds. ... or you could make cash payments for one month? Remember to empty out all bank accounts before BR day as you won't be able to keep any of it - even if its only £5, that could come in useful after BR - half a takeaway, milk and bread etc.

Thankyou FYP
It is all a bit complicated (as ever!)....so many plates spinning at the mo sometimes don't know which way to turn
Need a Court date now because it will help me sort things out logically, I hope Sooner rather than later now.
Flowerpot
xxx

beentheredonethatstilhere

When I changed bank accounts a while before going bankrupt I cancelled all my DD's. Told the people I was changing bank accounts and would let them know when I had a new account and could they send me a paper bill to pay at the Post Office. Every one was quite happy with it.

fiveyearplan

Find your local court that deals with bankruptcy and give them a call tomorrow to see how their system works. Some offer a walk in service while others you need an appointment.

http://www.hmcourts-service.gov.uk/

rog2

tomterm8 wrote: »

Under the doctrine of Uberrima fides ("utmost good faith") you have a duty to disclose any fact that has a bearing on an insurance contract even if not asked by the insurer.

In what way could having been declared bankrupt have any bearing on a insurance renewal, tt?

Puzzledbubbles

Thanks for the help guys, i rang and went through all of the details but no questions about being BR or anything, when we have the t's and c's through i will check the small print and will see if it says anything.

Thanks again

Puzzled x

tomterm8

rog2 wrote: »

In what way could having been declared bankrupt have any bearing on a insurance renewal, tt?

Many financial companies refuse to deal with former bankrupts as a matter of prejudice... and life companies are notorius for using the doctrine I've just mentioned to get out of their contracts. I've heared of life companies where they refused to pay up because tests for a disease were ordered by a doctor years before the insurance was taken out, even though the tests were negative, because the fact tests took place might have affected their decision to accept the risk.

Insurance is a mine field. The bottom line is any undisclosed fact, however tenuous, can be used by an insurance company to wiggle their way out of their end of the deal.

rog2

tomterm8 wrote: »

Many financial companies refuse to deal with former bankrupts as a matter of prejudice...

The bottom line is any undisclosed fact, however tenuous, can be used by an insurance company to wiggle their way out of their end of the deal.

If any insurance company refuses to deal with a former bankrupt due to 'prejudice' then they should take a pretty close look at not only themselves, but the Law.

I have, certainly, looked through all of the 'conditions of bankruptcy' as laid out by the Insolvency Service, and had the question been asked of me, either verbally or on any renewal form that I have ever had to complete, then I would have declared my former bankruptcy.

The question has never been asked, nor have I ever seen any clause that states that I am obliged to declare my status as a 'discharged bankrupt' and that failure to do so would invalidate any claim.

If that were, indeed, the case then I would ask how people like Richard Branson (among others) manage.

Financial Institutions do, of course, have the right to excercise discretion when dealing with a discharged bankrupt, and the record of that bankruptcy is, publically, available for them to check. However, once discharged, a bankrupt is legally entitled to apply for credit without the restriction that is placed on him/her during their bankruptcy period - in fact, even during the bankruptcy period a bankrupt is not prevented from applying for credit - he/she just needs to inform the creditor of his/her bankruptcy if applying for credit in excess of £500.

The record of a person's bankruptcy will drop off of their credit file after six years, although it will remain 'on pulic record' indefinitely via the London Gazette.

Once discharged, therefore, a bankrupt has no legal obligation to disclose his now discharged bankruptcy, and is only 'obliged' to mention it if specifically asked and if the reason for asking is pertinent to the situation.

tomterm8

rog2 wrote: »

Once discharged, therefore, a bankrupt has no legal obligation to disclose his now discharged bankruptcy, and is only 'obliged' to mention it if specifically asked and if the reason for asking is pertinent to the situation.

In the general case, that is true, but the realm of insurance is a completly different matter. It's a matter of law that there is a special legal duty to disclose any fact that might affect an insurer taking a risk, even if they do not specifically ask about it.

If they can show they refused to take contracts in the past because someone had been bankrupt, or that there is any increased risk, or even that any other insurance company would price the risk higher, they've got you.

rog2

tomterm8 wrote: »

In the general case, that is true, but the realm of insurance is a completly different matter. It's a matter of law that there is a special legal duty to disclose any fact that might affect an insurer taking a risk, even if they do not specifically ask about it.

If they can show they refused to take contracts in the past because someone had been bankrupt, or that there is any increased risk, or even that any other insurance company would price the risk higher, they've got you.

I fail to see that, tt - an applicant's previous bankruptcy does not increase the risk that a motor insurer takes when selling insurance to that person. It does not make that person any worse, or better, a driver than any other potential customer.

If, on the other hand, that person is applying to buy the insurance on credit terms, then yes - the insurer would be presented with a level of risk.

Please could you tell me, or point to a link, that will confirm what your points as legally correct and I will, happily, accept what you are saying.

rog2

dottydora wrote: »

I haven't been asked but on both my old policy details (Norwich Union) and my new one (Swift) it states if you go BR during the policy it becomes null and void (Or words to that effect). Swift said because I was already BR it didn't matter. No idea why! It's always worth checking first to be on the safe side.

Now that I can understand - I was with Royal and Sun Alliance when I was declared bankrupt. I had cancelled my policy a month before my br date.

I am, now, with Norwich Union (AVIVA) and have just trawled through the 35 page policy booklet, plus the four pages of 'important information' that is attached to the actual certificate. Whilst there are several references to the use of credit searches, by the insurer, in order to minimise fraud, along with their rights to report any potential 'fraudulent activity' to the relevant authorities, there is no mention whatsoever of the 'bankruptcy', whether actual or previous, of the insured.