Feedback on our SOA please...

JCS1

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.

Suspect it would be covered under after acquired assets.

kepar

Possibility

"x" went bankrupt last July and was in negative equity, a relative bought the BI . Now house prices have gone up and the house now has equity of £10.000.

Is the OR interested, under your theory the OR can now claim the property and equity,
Why then buy the BI?

Ineedaname

We're talking cash in the bank here, not equity, that's a completely different situation.

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.

Please explain why you would buy the BI of a policy?

Ineedaname

So that after discharge any payout is yours and not the ORs of course. If you don't ever buy it back then the OR always has a hand in that particular pot.

kepar

dojoman wrote: »

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.

Yes we both bought the policies back, thank you. We were told by the OR that if anything happened to us , he would not take the money because we had bought his interest in it.

I don't think your OR explained things well to you.

So get him to put up a link to where it says the OR will take the money.
Not what is said, but a link.

kepar

Ineedaname wrote: »

So that after discharge any payout is yours and not the ORs of course. If you don't ever buy it back then the OR always has a hand in that particular pot.

Why not cancel it and restart a new after discharge?

Ineedaname

kepar wrote: »

Why not cancel it and restart a new after discharge?

That's always an option for each individual to decide upon for themselves.

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.

Please explain what the ORs interest is in the policy?

Ineedaname

For the last time. The OR would have no further interest in the policy if the BR buys the BI back.

HOWEVER. If the BR claims on the policy during their BR year and receives a payout then the OR MUST be told of this windfall. The OR could then have a claim on that money as it is surplus to reasonable living expenses, the same as any other windfall received during BR year, a lottery win or inheritance for example.

It's perfectly simple and I really don't see why you don't get it. The OR is highly unlikely to allow a BR to keep cash received when it could go to pay OR fees instead.