A bit of disappointing news from OR

JCS1

I seem to remember that the OR can have an interest in policies taken out during BR, and that a new policy should be taken out after discharge to prevent this happening. I'll do a bit of digging and see what I find.

Round_The_Bend

I had a life assurance policy prior to bankruptcy. The OR offered to let me buy the BI for £50, which I thought was reasonable. However, upon checking the cost of a new policy, I realised that I could get a new policy for a lower monthly premium that covered me for longer.

I told the OR and asked if I could just stop the existing policy and take out the new one. I said that I ws still prepared to pay the BI, as I didn't want it to look like I was just trying to avoid paying the £50. The OR told me that there was no problem doing what I had proposed and also declined to accept the £50 payment.

Hope this helps.

JCS1

Had a look and can't find what I was thinking off. I think it may come under after acquired assets, assuming something happens to the person prior to discharge.

Suggest an email to the IS to check this out:

http://www.insolvency.gov.uk/contactus/general.htm

blind-as-a-bat_2

I think you have highlighted the examiners confusion here JCS1, the OR can not claim any beneft in a life policy taken out after BR, and lets face it, there wont be any, but can claim from a payout if within the BR period.

But as most policy's wont pay in the first x months (usually at least six) its unlikely to happen.

I can not see how the OR can claim any payment of a with profits policy at a later date, even if it is taken out after BR but before discharge as long as any claim is after discharge

MicheH

I am so confused.

Let me just reiterate what i'm saying.

I want to take out a new policy as an undischarged bankrupt.
I want the amount to cover the living persons debts and the deceased persons debts plus money for a funeral plus money to support my girls for a little while
Why do i have to buy out the OR's interest when I'm saying that if we were to come into any money from if one of us dies then of course they should have it as we're undischarged.

How can a life policy not be paid out till 6 months after the person has died? What would be the point and how could a funeral be paid for.

This is turning into a right headache. I just want some cover so I can rest that we'll be ok if we lose one another. I have 2 little girls. Getting upset. I'm sorry.

Round_The_Bend

MicheH wrote: »

I am so confused.

Let me just reiterate what i'm saying.

I want to take out a new policy as an undischarged bankrupt. No problem. You can do this.
I want the amount to cover the living persons debts and the deceased persons debts plus money for a funeral plus money to support my girls for a little while
Why do i have to buy out the OR's interest when I'm saying that if we were to come into any money from if one of us dies then of course they should have it as we're undischarged. You don't have to buy out the OR if it's a new policy taken out after BR. See my post above.

Keep posting if you have any further queries.

blind-as-a-bat_2

MicheH wrote: »

I am so confused.

Let me just reiterate what i'm saying.

I want to take out a new policy as an undischarged bankrupt.
I want the amount to cover the living persons debts and the deceased persons debts plus money for a funeral plus money to support my girls for a little while
Why do i have to buy out the OR's interest when I'm saying that if we were to come into any money from if one of us dies then of course they should have it as we're undischarged.

How can a life policy not be paid out till 6 months after the person has died? What would be the point and how could a funeral be paid for.
This is turning into a right headache. I just want some cover so I can rest that we'll be ok if we lose one another. I have 2 little girls. Getting upset. I'm sorry.

You misunderstood, i did not mean it takes them six months to pay up in the event of death, what i meant was most policys i have ever seen will not pay out in event of death at all untill they have been paid for six months or more, its usually in the small print, there may be some that give imediate cover, but it is somethng you should watch for

MicheH

Oh I see bat. Thanks, just had it up to here with this. I will watch for that. Gosh nearly screwed by the system again.

debtinfo

Agreed with bat, after aquired assets have to be claimed they do not automatically vest in the OR. The OR will only claim if the NEW insurance policy paid out whilst undischarged, and this is very unlikely

kissjenn

Hi,

Normal term assuarance you would get from any big household company - Prudential, Standard Life, Scottish Widows, Friends Provident etc etc will cover you with immediate effect. If you are youngish, healthy and no underlying medical problems which you don't disclose they will cover you quickly and cheaply.

In my humble opinion it's the most valuable cover you can have if you've dependents...so please don't worry about non-payment, these companies pay out millions every year to families like yours and mine. It's the whole reason they were founded a couple of hundred years ago.

I hope this puts your mind at ease at least about the product - can add nothing on the br implications I'm afraid.

kj