Endowment policy

creditcardshuffler

Hi I am just working towards becoming bankrupt (I think it will be my only option pretty soon):eek:

I have an old endowment policy that I could sell/surrender now before my BR. This would go to clearing my outstanding gas and electricity bills, overdraft and paying for the fees associated with going BR. Would an OR see this sale as "NAUGHTY" because I would be "realising some of my assets" (only worth 2K) before becoming BR.

To sell or not to sell (surrender) that is my question?

Richard_S

creditcardshuffler wrote: »

Hi I am just working towards becoming bankrupt (I think it will be my only option pretty soon):eek:

I have an old endowment policy that I could sell/surrender now before my BR. This would go to clearing my outstanding gas and electricity bills, overdraft and paying for the fees associated with going BR. Would an OR see this sale as "NAUGHTY" because I would be "realising some of my assets" (only worth 2K) before becoming BR.

To sell or not to sell (surrender) that is my question?

Hi ccs,

Its only a relatively small amount and if its going towards essential expenditure and the cost of petitioning for your bankruptcy than I don't think you'd have any problems at all.

I wouldn't repay the overdraft though; its not essential, it will be included in your bankruptcy and there is a chance that that could be seen as favouring a creditor.

Richard

backontheup

Yes, to echo what the wonderful Richard has said - cash it in, pay the BR fee's and maybe a couple of months rent.

Richard_S

backontheup wrote: »

Yes, to echo what the wonderful Richard has said - cash it in, pay the BR fee's and maybe a couple of months rent.

Steady on backontheup,

I'm not used to that sort of accolade.:o

creditcardshuffler

Thanks for the quick replies I never thought about paying rent up front ,good idea, I was going to pay the cheque I receive from the sale of my endowment into my current account and so the overdraft would be gone automatically, perhaps I should find somewhere else to stash it if the OR would think that paying it into my current account would be favouring them as creditors. I have only used the one account for years so would have to try and open a new account elsewhere or pay it into some one elses account.

My young (less than 10years) daughter has a halifax savings account we opened for her when she was born is this safe from the OR (all her birthday and christmas money has gone in there for years) I would hate to think that my foolishness would rob her of her savings?:o

Richard_S

Hi ccs,

The O.R won't have any problems with it providing there's not tens of thousands of pounds that you've been laundering into her account.:D

I do recall however, that one of the posters on here had a problem with the Halifax not being prepared to keep the account open because the account was in the name of a bankrupt.

As for the endowment cheque, I think a new account would be a good idea.

Richard

creditcardshuffler

Thank you very much Richard_S for your quick replies

I am just starting down this road to BR and will inevitably have lots of questions.

creditcardshuffler

I had an interview at the CAB yesterday , they were very thorough and explained everything clearly. However when I mentioned surrendering the endowment to fund the BR fees and essential expenses They warned me against it as the OR may see it as a BR offence and I could incur a BR restriction order?? which has scared the hell out of me....

The £2,300 ish I would have got if I surrendered the endowment would have helped me but I am now scared to do it.

Has any body got any advice please..... I know it will be my decision but ...after yesterday my plans for going BR may have to be put on hold until I can raise the 4-500 pounds I need to pay the courts!!!:eek:

Richard_S

creditcardshuffler wrote: »

I had an interview at the CAB yesterday , they were very thorough and explained everything clearly. However when I mentioned surrendering the endowment to fund the BR fees and essential expenses They warned me against it as the OR may see it as a BR offence and I could incur a BR restriction order?? which has scared the hell out of me....

The £2,300 ish I would have got if I surrendered the endowment would have helped me but I am now scared to do it.

Has any body got any advice please..... I know it will be my decision but ...after yesterday my plans for going BR may have to be put on hold until I can raise the 4-500 pounds I need to pay the courts!!!:eek:

Hi ccs,

We surrendered about £11k from an endowment policy in the January before our bankruptcy in August of last year. When queried about it I said that we'd used it to try and keep our business going, paying monthly debt repayments and essential household expenditure. It was never mentioned after that.

If we'd done it the month before bankruptcy and couldn't account for the cash it would probably have caused us problems. Why not surrender it, and use it for essential expenditure for a couple of months and then use it to fund your fees.

Richard

creditcardshuffler

Many thanks Richard_s that is a little relief but is there any more I am feeling quite vulnerable at the moment......

Richard_S

Hi ccs,

I'm just going into a meeting but should be able to log on this evening. Send a PM to fermi and ask him to have a look at your thread and see what he thinks.

Regards

Richard