Bankrupt with a Life Insurance policy

dojoman

Hi DI, so if I bought ours back, could I then transfer it in to my daughters name?

debtinfo

yep after you buy it back, you can do as you wish, The OR con claim the money if you are the policy holder or the beneficiary, if you are neither the OR cannot claim the money if you die

skibadee

I had a life insurance with Axa...which the OR told me I could buy back for £50..but even if I did that they would still have a interest in it even after discharge...I didn't bother..I cancelled the policy.

My other Life insurance is with Friends Provident...the OR had no interest in that as when they contacted Friends Provident they told OR that it was Life Insurance pension...[ although it is only Life insurance policy I have]...I think its because they are Friends Provident Pensions Ltd.

dojoman

skibadee wrote: »

I had a life insurance with Axa...which the OR told me I could buy back for £50..but even if I did that they would still have a interest in it even after discharge...I didn't bother..I cancelled the policy.

My other Life insurance is with Friends Provident...the OR had no interest in that as when they contacted Friends Provident they told OR that it was Life Insurance pension...[ although it is only Life insurance policy I have]...I think its because they are Friends Provident Pensions Ltd.

Is this right? I thought that if you had bought the BI and was discharged, then any monies was yours or your families.

debtinfo

no that is not right

If you buy the BI, they only have an interest in any money you receive from the policy until discharge.

If you DONT buy the BI, the OR will get any payout forever

dojoman

Thanks again DI, greatly appreciated...

skibadee

I must of mis-understood my OR..I thought he definetly said they could claim my life insurance even after discharge.
Obviously I got it wrong..sorry.

gingypingy

Hi

I know this was a while a go but I'm going through the same thing at the moment.

The OR does have a right over your life insurance even after discharge unless you pay the £50 to get back the policy. It is seen as an assett. So therefore the property of the OR.

Even if you don't die for another 50 years, the pay out would first go to the OR then any monies left would go to your estate.

I paid the £50 as I had the policy for 12 years and would not be able to get such a premium again now I am older.

It does stink, just another way to make more money, as if the £550 wasn't enough to go bankrupt in the first place.

Also ours was a joint policy so we had to pay £100 even though it was just one policy!

Good luck everyone. 6 more months and we should be discharged.

Charlotte xxxx

dojoman

You should not have had to pay £100 for one policy, the cost is £50 per policy, we had 2 joint ones and had to pay £25 per person per policy.


here is the OR's guidance from their technical manual

31.5.44 Realising life assurance with no surrender value (amended November 2007)
Where the policy does not have a surrender value, the official receiver should consider allowing the debtor to purchase the trustee's interest in the policy. The Insolvency Service has adopted a standard fee of £50 to cover the administrative costs of any assignment of the policy. The standard letter [LTBPOL] should be sent to the bankrupt which outlines the possible action he/she may take in respect of such a policy. It should be noted that if the policy is kept in force by the bankrupt (for example, by continuation of payment of premiums) and the bankrupt does not effect an assigment then any payment due from the policy will be an asset in the bankruptcy estate. The standard letter advises the bankrupt of this circumstance

Tomchris

Can you cancel a life insurance policy after you have been discharged from bankruptcy?