My bankruptcy and my parent's insurance

FlySi

Hi all

Could do with some guidance on the impact of my bankruptcy on my parent's life. I live in Scotland and in January of this year I was declared bankrupt under the Low Income Low Asset (LILA) provision. I'd accumulated debts to fund a doctorate and had entered a debt management plan whilst I completed the doctorate. However, last year I was diagnosed with an underlying health condition that would require extensive surgeries and treatment both prior to and following any operations. In all likelihood I would be unable to work for between 18 months and 2 years.

As I was funding the doctorate myself (there is little funding available for my area of study), I was fortunate enough to be able to live at home with my parents and work part-time, etc. to cover costs. However, following discussions with my debt management company and my parents, it was decided that bankruptcy was the best option available to me. As I had no assets of any great value, and as I had no income prior to the first treatment and subsequent, I qualified for LILA. As such, I would be discharged in a year's time.

I am now 3 months short of being discharged and thus far, everything has been fine (save for my health worries). However, my parent's home and contents insurance is due for renewal and they were today contacted by one company seeking their business. When they asked the usual 'Have you or anyone in the house been declared bankrupt?' my father said yes and provided an explanation. That's when things went downhill - my father got into an argument about why my bankruptcy should be of any impact upon his insurance and his ability to pay any premiums.

As such, we've now been left to wonder what impact my bankruptcy will have their ability to obtain financial services. If anybody could offer some advice I'd be grateful.

Ineedaname

Hi there, if you have a read of CitySlicker's thread you'll see that he is working very hard to try and change things for contents insurance.

There is also a BR friendly home insurance thread which you will hopefully find very useful.

I wish you well with your operations, treatment and future recovery.