Bankruptcy and Life Assurance

Tornik

Hey gang, I was hoping I can get some help/clarification with something.

My partner and I within a couple of months of the end of our 3-year bankruptcy - sequestration if you want to be picky, since we're in Scotland - and just this morning we received a letter from our trustees asking about life assurance policies.

The trustees are asking if two life assurance policies we had in force at the start of the period still remain in force. One of them does, and I can't remember us ever being instructed to close it or hand over details about it and I'm just looking for some advice.

Going by what's on the Insolvency.gov.uk website, there's a good chance that there will be a surrender value in the policy, but I'm worried about where we stand owing to the fact that the policy has been active for all this time.

Is the polciy likely to be sold to the trustees by the assurance company, lock stack and barrel, meaning we have to start a new one after we're discharged? Or will we be expected/compelled to pay a contribution because we've had the policy active?

fiveyearplan

I'm not sure if the rules on this are different in Scotland but in E&W the trustee could have an interest in the policy and they usually sell them back to the BR for £50.

Hopefully someone more knowledgeble on this subject will give you an answer.

Tornik

I think that, generally, the rules are the same throughout the UK, more so now that the length of bankruptcy/sequestration is now one year in Scotland instead of three.

I read about the £50 on the Insolvency.gv.uk website; I think that's more of an administration fee than anything else. I'm just more concerned that we'll get hit for some kind of fine, tbh.

tigerfeet2006

You should be looking at the AIB website I would have thought

http://www.aib.gov.uk/