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I Owe Insurance Company £334,000 due to Voided Insurance

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  • GDB2222
    GDB2222 Posts: 24,899 Forumite
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    This is an interesting reference.

    https://www.i-m-a.org.uk/wp-content/uploads/ima-ljdoc-203-28.pdf


    It makes it clear that the £34k legal fees claim would not survive bankruptcy. Nor would any part of the £300k relating to financial loss. And that, of course, assumes that the whole debt is not extinguished on bankruptcy.

    In any case, the OP could make a claim to be relieved of the debt under S281(5) of the Insolvency Act. The criterion would then be:
    “whether there is so little prospect of the
    outstanding sum being paid, even in part,
    that its release would not substantially
    prejudice the respondent but would
    materially advantage the applicant in a
    realistic effort to build a viable financial
    future for himself and his dependents”.

    From what the OP has written, that might well apply in his case.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • Arklight
    Arklight Posts: 3,173 Forumite
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    Oh golly, here we go. All the unqualified internet barristers are dusting off their wigs.

    Seriously OP, head to the CAB and get some proper advice.
  • GDB2222
    GDB2222 Posts: 24,899 Forumite
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    Arklight wrote: »
    Oh golly, here we go. All the unqualified internet barristers are dusting off their wigs.

    Seriously OP, head to the CAB and get some proper advice.

    I totally agree that the OP needs qualified advice, but surely the chances are pretty low that the local CAB know the intricacies of insolvency law?

    He needs an insolvency specialist, prepared to do a bit of pro bono work. Unfortunately, insolvency and pro bono don't fit naturally together.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • parking_question_chap
    parking_question_chap Posts: 2,694 Forumite
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    GDB2222 wrote: »
    I totally agree that the OP needs qualified advice, but surely the chances are pretty low that the local CAB know the intricacies of insolvency law?

    He needs an insolvency specialist, prepared to do a bit of pro bono work. Unfortunately, insolvency and pro bono don't fit naturally together.


    Agreed. The chance of anybody at the CAB having the knowledge OP needs is slim to none.
  • Arklight
    Arklight Posts: 3,173 Forumite
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    parking_question_chap wrote: »
    Agreed. The chance of anybody at the CAB having the knowledge OP needs is slim to none.

    A lot better odds than he'll get here then.
  • GDB2222
    GDB2222 Posts: 24,899 Forumite
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    Arklight wrote: »
    A lot better odds than he'll get here then.

    :)

    I wasn’t trying to give legal advice, but I did get interested in looking up the law on this and having a chat about it. I would not recommend anyone takes much notice of this speculation, though.

    I think it’s pretty obvious what will happen in practice. Either the OP will go bankrupt and find that does extinguish the debt - preferably in the opposite order!

    Or the insurance company will pursue him for a while and find that it is costing them more than they are recovering. Eventually, they’ll give up.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • fred246
    fred246 Posts: 3,620 Forumite
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    edited 8 November 2019 at 10:35AM
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    There can't be many 49 year olds without any money at all. I wonder how safe the divorced partner is with the young children. Is her house and belongings at risk?
  • waamo
    waamo Posts: 10,298 Forumite
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    fred246 wrote: »
    There can't be many 49 year olds without any money at all. I wonder how safe the divorced partner is with the young children. Is her house and belongings at risk?

    Not unless they are in his name which I very much doubt.
  • custardy
    custardy Posts: 38,365 Forumite
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    fred246 wrote: »
    There can't be many 49 year olds without any money at all. I wonder how safe the divorced partner is with the young children. Is her house and belongings at risk?

    define no money.
    Unless they have a good house with little mortgage then a few grand in the bank is near pointless with a £300K+ debt
  • fred246
    fred246 Posts: 3,620 Forumite
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    If you are married with belongings and own half a house and then you have a claim against you surely you can't just divorce her and give her everything and run off and say you are penniless.
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