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Trustee cannot seize Endowment linked mortgage
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open2people
Posts: 1 Newbie
The official receiver cannot seize an endowment if it's linked to a mortgage (although they'll certainly try!!) because of important bankruptcy procedure.
It doesn't matter if the bank/ building society is a 'notice of interest' type. A notice of interest means the endowment company keeps the bank informed ie when it'll be matured to pay towards the mortgage. An 'assigned mortgage' means that the bank has the right to endowment (ie it comes back to pay the mortgage off). The bankrupty rules (Technical Manual/ Case Help Manual) states if there's a notice of interest it's enough to give the endowment back to the person to pay their mortgage.
The official receiver's technical manual and case help manual is available now again via the Insolvency Services website under Freedom Of Information Act.
If you have an endowment which was taken out to pay for your mortgage. You should be able to claim it back. It is not asset under the Insolvency Act 1986 which is the law they use to take an asset..such as an endowment.
Say the official receiver has no right to the endowment. The right words are 'we intended the endowment to pay for the mortgage and this happened. You can tell the trustee (not the clerk!!) the endowment policy was taken out to pay for the main home. If the official receiver is being awkward, he can be reported to the Parliament Ombudsman. Here's the official link below to formal procedure. They will not tell you this information unless you state your personal circumstance. The information below puts the power in the bank's/ building society's hands, but ignore that and make contact direct with the official receiver. Their powers are limited!!!
"18. What if the endowment policy is assigned to a mortgage lender?
.."if it was clear from relevant documents that it was intended that the life policy in question be used for repayment of the mortgage advance.. The official receiver (or trustee) would therefore have no claim over the policy. Check with the examiner if any claims of this nature are made by the loanee/mortgagee."
Step 1. Go to Insolvency Service website (Government, BIS), 2. Freedom of Information
3. Technical or Case Help Manual 4. I/Insurance/LifePolicies
It doesn't matter if the bank/ building society is a 'notice of interest' type. A notice of interest means the endowment company keeps the bank informed ie when it'll be matured to pay towards the mortgage. An 'assigned mortgage' means that the bank has the right to endowment (ie it comes back to pay the mortgage off). The bankrupty rules (Technical Manual/ Case Help Manual) states if there's a notice of interest it's enough to give the endowment back to the person to pay their mortgage.
The official receiver's technical manual and case help manual is available now again via the Insolvency Services website under Freedom Of Information Act.
If you have an endowment which was taken out to pay for your mortgage. You should be able to claim it back. It is not asset under the Insolvency Act 1986 which is the law they use to take an asset..such as an endowment.
Say the official receiver has no right to the endowment. The right words are 'we intended the endowment to pay for the mortgage and this happened. You can tell the trustee (not the clerk!!) the endowment policy was taken out to pay for the main home. If the official receiver is being awkward, he can be reported to the Parliament Ombudsman. Here's the official link below to formal procedure. They will not tell you this information unless you state your personal circumstance. The information below puts the power in the bank's/ building society's hands, but ignore that and make contact direct with the official receiver. Their powers are limited!!!
"18. What if the endowment policy is assigned to a mortgage lender?
.."if it was clear from relevant documents that it was intended that the life policy in question be used for repayment of the mortgage advance.. The official receiver (or trustee) would therefore have no claim over the policy. Check with the examiner if any claims of this nature are made by the loanee/mortgagee."
Step 1. Go to Insolvency Service website (Government, BIS), 2. Freedom of Information
3. Technical or Case Help Manual 4. I/Insurance/LifePolicies
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