Endowment Policy and BR

SurreyLass1

It was a whole month ago I went BR - 28th March - 1 month down!

One of my only assets is a joint endowment policy.
The policy was taken out in 1998 with my husband to pay back a mortgage. We sold the property in 2002, but were advised by our financial adviser to continue paying into the endowment at its lowest level, as it was not worth cashing it in. My husband continued to make payments of £20 a month into it, and it was established on a 25 year term, so has a looonnnggg time until maturity still.

Obviously I declared this to the OR, and in my phone interview he said he will get in touch with the company about it.

Does anyone have any experience what might happen with this, and what the possible outcomes might be?

My husband has made the contributions himself since 2003 when I gave up work and we had our first child, though the contribution was coming from a joint account, that he alone paid money into each month from his own sole account.

Comments as always gratefully accepted

dojoman

Sorry, wrong info given, please see correct info from JCS1 :o:o

SurreyLass1

Really, just £50?

My husband's 1/2 I know is secure, but I wasnt sure what would be the options for my 1/2. To be honest we dont even know what its worth - probably not much, but its still an investment of sorts.

Thanks Dojoman

JCS1

The £50 relates to Life Assurance policies.

I'm assuming that as the property has been sold that the endowment is not assigned to a mortgage company? If not, then it will be an asset in your bankruptcy and any proceeds will go the OR.

Ineedaname

ALL the proceeds JCS? I thought only Surreylass had gone BR and not her husband, if it's a joint policy then surely only half the proceeds would go to the OR?

SurreyLass1

Yes, the property was sold in 2002, and the policy is in joint names, but its only me who has gone BR.

As far as I understood it, they wont take my husbands half. The policy was originally established to pay off a mortgage, but the mortgage company were paid off when the property sold, so it is purely a weak form of investment now.

Anyone else know what might happen - would the OR wait until it matures then?

kepar

Endowment policies can be sold at any time, so the OR will not have to wait until maturity. There is/was a good market for them.

JCS1

Ineedaname wrote: »

ALL the proceeds JCS? I thought only Surreylass had gone BR and not her husband, if it's a joint policy then surely only half the proceeds would go to the OR?

Sorry, was posting in a bit of rush before. They would need to work out what proportion would belong to OP and which to husband and then split it that way.

Not sure if they would wait until the policy matures though, as they have the husband's share to consider. Might be worth checking the technical manual to see if any guidance in there (I would check, but going out straight from work).

debtinfo

basically they would ask the joint none bankrupt owner to buy the OR out, or agree to sell on the market as KEPAR says, but they cannot force the non bankrupt person to sell. If they dont want to sell then they would just sit on it until it matures and then take half, so if only the none bankrupt person is paying it they would have to work out if it was worthwhile