Feedback on our SOA please...

kepar

INAN if you are so convinced that you are right show me where is says that the OR will take the money and I will bow to your greater Knowledge.

philnicandamy

http://insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part4/part_4.htm

Ineedaname

Let's put it this way Kepar, if you were to receive a £2k bonus from work you would have to declare it to the OR and they may well take it off you. No difference if you receive £2k from an insurance payout, you still need to declare it whether the OR has any interest in the policy or not. The OR may decide to take the money off you.

Clear enough now?

dojoman

INAN is right, I bought back the BI in both of our policies, but I knew that if anything did happen during my BR the monies would go to the OR, however once I was discharged the OR will not have any right to them. I took this risk, because to set new policies up for the amounts I already had, the premiums would have been far higher than what I was already paying. Try not to get upset INAN.

Ineedaname

Thanks Dojo, I'm not upset, just wish any challenge would include proof of why the challenge is made.

My thoughts were just that and based on logic having thought through my earlier comment in post #14. For all I knew there could have been some ruling that once the BI was bought back then payouts under certain circumstances would belong to the BR, but I didn't think so from reading comments about this subject from more experienced members.

So it's good to have my logic confirmed by a more experienced member of the forum Dojo.

Thanks to Phil for the link too, really useful to have that.

kepar

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.


That says that if you do not pay the £50 the any payment due from the policy will go into the br estate, therefore when you pay you take the OR's interest in it away. This only applies in policies with no surrender value.

INAN if I reading it wrong , please explain.

Thanks Dojo, I'm not upset, just wish any challenge would include proof of why the challenge is made.

I am challenging you because I think you are wrong and giving the wrong info to the OP and any others reading this post.

Ineedaname

dojoman wrote: »

INAN is right, I bought back the BI in both of our policies, but I knew that if anything did happen during my BR the monies would go to the OR, however once I was discharged the OR will not have any right to them.

Dojo agrees with me.

If you think I am wrong then please provide proof of what happens if you buy the BI back from the OR and then the policy pays out.

Like I said earlier, ANY money you come into during your BR year, from ANY source, even a bought back insurance policy, MUST be declared to the OR and they can have claim to it. This is separate from the BI issue and I think you're missing that point.

The way you see it, if you buy back the BI and then lose a leg in an accident and the policy pays out £10k as an example, then you get to keep that money purely because the OR no longer has BI in the policy. I do not believe that to be the case as the OR has a claim on ANY money you receive during your BR year.

If an experienced forum member says there's an exemption on policy payouts when the BI has been bought back then fine. But I don't see that being the case.

arrowarra

Right we have had another look and here is the revised version. We have tweaked a few things/ Again really appreciate the help so far but any advice on this one would be much appreciated!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1425
Partners monthly income after tax....... 0
Benefits................................ 262
Other income............................ 0
Total monthly income.................... 1687
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 35
Gas..................................... 57
Oil..................................... 0
Water rates............................. 19
Telephone (land line)................... 60
Mobile phone............................ 0
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 470
Clothing................................ 60
Petrol/diesel........................... 150
Road tax................................ 13
Car Insurance........................... 61
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 15
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 20
Total monthly expenses.................. 1679

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Northern Rock..................28000.....106.......0
Barclay Loan...................4500......141.......0
Barclaycard....................5500......136.......0
Overdraft......................1000......0.........0
Natiowide CC...................6000......167.......0
Nationwide CC..................1400......35........0
Total unsecured debts..........46400.....585.......-

Monthly Budget Summary
Total monthly income.................... 1,687
Expenses (including HP & secured debts). 1,679
Available for debt repayments........... 8
Monthly UNsecured debt repayments....... 585
Amount short for making debt repayments. -577
Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -46,400
Net Assets.............................. -44,900
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Ineedaname

That all looks fine to me for a joint SOA, but remember you are filing separately for BR so each SOA should reflect your personal income and the partner's contribution to the household expenditure. It's worked out proportionately to the percentage of total income, i.e. if your partner earns 80% of the total household income, then he pays 80% of all household expenditure and you pay 20%.

So on your SOA it should show your full income and 80% of partners and on his it should show his entire income and 20% of yours.

kepar

Ineedaname wrote: »

Dojo agrees with me.

If you think I am wrong then please provide proof of what happens if you buy the BI back from the OR and then the policy pays out.

Like I said earlier, ANY money you come into during your BR year, from ANY source, even a bought back insurance policy, MUST be declared to the OR and they can have claim to it. This is separate from the BI issue and I think you're missing that point.

The way you see it, if you buy back the BI and then lose a leg in an accident and the policy pays out £10k as an example, then you get to keep that money purely because the OR no longer has BI in the policy. I do not believe that to be the case as the OR has a claim on ANY money you receive during your BR year.

If an experienced forum member says there's an exemption on policy payouts when the BI has been bought back then fine. But I don't see that being the case.

I did I quoted it at the top of my last post. It was taken from the link that Phil put up. I suggest you read that. You might learn something.