Feedback on our SOA please...

Ineedaname

So you think the OR would allow you to keep a substantial insurance payoutjust because you paid £50 to buy back the BI in the policy which paid out?

kepar

Yes, that is what the £50 is for. The same as people buying the negative equity in the house ( changed now, with new rules) but if the house prices had shot up the money is yours. If you work out how many £50's the OR's receive then that probably well exceeds what they could possibly get in a pay off.

Ineedaname

God luck with that then. As I see it, the OR wants to know about ANY money you receive during your BR year and they are unlikely to let you keep much over a few quid.

But you think because you paid a measly £50 to buy back the BI in an insurance policy, if it pays out for instance £10k because you lost your leg, the OR is going to say "that's OK, don't worry about my fees, you keep your nice little pot of money" - and all this during your BR year when the OR has control of your surplus?

I do understand what you are seeing in the quote from Phil's link. But that doesn't mean the OR ignores all the other rules of BR, such as needing to take every penny they can off you to pay their fees and try to recoup some of your debt.

dojoman

Firstly, my apologies to the OP:o

Kepar you are wrong, I know as I speak from experience. I purchased 2 LI policies with no surrender value back from the OR for £100. If my wife or myself had died during the BR then the OR would have had a claim to the policy, I know that it does not sound right but that is the rule. I could have put the proceeds in to trust for my children, that way the OR would not have had a claim on it even during my BR, in the end it was too much bother and I just hoped that nothing would happen whilst BR. Now we are discharged, because we purchased the BI back any proceeds from the policies are ours to keep.


https://forums.moneysavingexpert.com/discussion/2773208

kepar

Can you not read?

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.

dojoman

kepar wrote: »

Can you not read?

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.

Did you buy a policy back from your OR? and yes I can read perfectly well thank you. Read DI`s post in the link I put up, don`t forget he used to work for the IS.

dojoman

https://forums.moneysavingexpert.com/discussion/2326435

https://forums.moneysavingexpert.com/discussion/2145459

Ineedaname

Kepar - a surrender value is that which you would receive for cashing in the policy, most life insurance or critical illness policies do not have a surrender value. Any claim on the policy during the BR year would have to be surrendered to the OR even if the BI had been bought back. See my posts above about ANY money you receive during your BR year having to be declared to the OR.

arrowarra

Ineedaname wrote: »

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.

Thanks for looking through it again, we appreciate the feedback. My wife doesn't work as she has stayed home with the children so my wage is all our household income plus the tax credits and child benefit so we're assuming that we just reverse the income figures on her SOA and keep all the expenditure the same on both but please say if we've got that wrong.

Perhaps a silly question but do you include your SOA in this format in the actual forms when filing for BR or just use this format to calculate and insert the figures into the forms?
Thanks again

Ineedaname

To be honest, I think you have it right in your case as there's not much in the way of 'personal' expenditure for either of you. So both SOAs will probably be about the same, sorry about any confusion from the earlier suggestion which is the usual when both parties are earning.

The SOA on the BR form is very limited. You can either write all over the page to include every expenditure or do what I did which was to put "please see additional sheet" and print your own out. I would type it out though rather than just print the SOA you've used on here, then there's no gaps. You'll just need to sign and date the additional sheet, making sure your full name(s) are printed at the top of course, and job done.

Please accept my apologies as well for the additional discussion we seem to have got into on your thread. Hopefully it's sorted now.