My I and E - please tell me if its ok.

dalip

Just delete broadband/mobile and leave it as phone.I never mentioned broadband as i could not say i needed it for work. Did not think saying it was to pick up tips on this forum would make him let me keep it.Dalip

fermi

Scarlett.1974 wrote: »

Looks good to me NME. The only think I may change would be taking out the broadband from your 'telephone/broadband/mobile' because the OR usually doesn't allow for it and so to not risk him/her from reducing that amount I would just take it out

Yep. You are normally allowed a reasonable sum for mobile costs on top of the landline, so changing the entry to "Telephone/Mobile" should be fine.

NoMoreExcuses

Here goes - take 22!

Rent - £1468 - Paid by housing benefit
Council tax - £69.88(paid by cb benefit)
Houskeeping - £400
Gas/Electricity - £90
Water - £35
Telephone/Mobile - £70
Petrol etc - £90 (we live miles from schools as we are in Temp accom)
Clothing - £60
Maint/fines - 0 (did not include CCJs because have not paid these since the move)
car tax/ins/maint/mot - £41
Life insurance - £10
Pet insurance - £15
Haircuts - £26
Dry cleaning - £6
TV License - £11
Holidays/school trips/birthdays - £25
Emergency/contingency - £25
Total - £904 - 1 Adult, 1 13 year old, 1 9 year old, 1 16 month old and 1 dog.

Income including all benefits and rent/housing benefit cancelling each other out - £910 (however I think this may also change because of child tax credits.)

Just need to figure out how to get myself off of joint account in next 2 days and get some life insurance that I can understand (sorry Richard, I dont get all that trust malarky - I just dont understand what that means or how to go about it). And if I set up dd whats the point? They will have to be cancelled in nect 2 days anyway.....now am really really confused.

Its like tidying out a draw that has odds and ends with...its ok with the bits that you definately want, but what do you do about the rest?

dalip

Don't know if it's any help but i went b/c end of nov,did not get letter about joint savings account until middle of jan. I know it's a pain but can you cancel d/d and pay via cheque(from parent/friend)until new acc up and running. I was concerned about this, so have my wages going into hubby acc and still deal with all the finances now on-line. I know thats not possible for you but can you not think of a way round it until you can get another account up and running?. Dalip

tigerfeet2006

Looks good to me NME

Richard could you please do a thread on Life Assurance 101 for us simple minded folks . It's something we should do as well especially with the 3 children :rolleyes: .

Richard_S

NoMoreExcuses wrote: »

Just need to figure out how to get myself off of joint account in next 2 days and get some life insurance that I can understand (sorry Richard, I dont get all that trust malarky - I just dont understand what that means or how to go about it). And if I set up dd whats the point? They will have to be cancelled in nect 2 days anyway.....now am really really confused.

Its like tidying out a draw that has odds and ends with...its ok with the bits that you definately want, but what do you do about the rest?

Hi NME,

If you buy a life insurance policy now, you have to declare it to the O.R, and they (they being your estate in bankruptcy) become the beneficiaries of the policy, should anything happen to you.

I assume you want a policy so that your children have a large cash sum in the event of your untimely demise. The way around that, is to name your children as beneficiaries of the policy, through a simple trust that is independent of your estate in bankruptcy.

If your estate won't benefit from any policy then the O.R might not allow it in your I&E Budget, but for £10-£20 pcm it's not going to make a difference anyway; the difference being between an IPA and not.

I'll look out the policy details to see if it has a specific name.

When we were declared bankrupt we had life insurance to the tune of £400k. If either or both of us died, the remaining spouse or children wouldn't have received anything from the policy until our estate and all costs had been settled in full; in effect nothing left.

We cancelled them and set up another one that named the children as the beneficiaries, but it was independent of us or our bankruptcy, i.e. if one of us died now the children would get the cash not the surviving spouse.

I've confused myself now.:eek: :eek:

philnicandamy

Richard_S wrote: »

I've confused myself now.:eek: :eek:

its his age..bless

NoMoreExcuses

Phew....glad its not just me then.

Would it be asking to much to have a step programme?

1. Go to "Big Building Society/Bank Name".
2. Ask for this particular policy.
3. Tell them XYZ.
4. Sign policy.
5. Tell OR XYZ.

Richard_S

NoMoreExcuses wrote: »

Phew....glad its not just me then.

Would it be asking to much to have a step programme?

1. Go to "Big Building Society/Bank Name".
2. Ask for this particular policy.
3. Tell them XYZ.
4. Sign policy.
5. Tell OR XYZ.

1. Our policy is with Not Very Friendly High Street Bank Plc
2. Tell them you are in the process of declaring bankrupty or have indeed been recently declared bankrupt, and you want to take out a policy with your children as beneficiaries, that cannot form part of your estate in bankruptcy.
3. Tell them you understand that once the policy is written you transfer any potential future benefits to a Trust in your children's name, and that a guy you've been chatting to on the internet is trying to find out the exact name of the policy; he can't remember because he's had such a carefree happy life, that he's spent more time merry than morbid, and tends to forget things, so he doesn't clutter his mind with unnecessary and tiresome detail.
4. Sign policy, and then sign something else that transfers any benefits into a simple little Trust in your children's names.
5. Don't tell the O.R anything; "what he/she doesn't know won't hurt him/her. It'll be something you're doing out of your surplus income that's got nothing to do with anybody.

A little light reading:

POLICIES WITH NO VALUE AT THE DATE OF THE BANKRUPTCY ORDER (Unless you "croak" before you're discharged:eek: :eek: )

The RTLU Group has agreed a standard procedure for dealing with policies which have no surrender value at the time of the bankruptcy order but the proceeds of which (if a claim is made) vest in the estate. This includes Term/ Whole Life assurance policies, endowment policies which have not yet accrued a surrender value and Critical Illness policies.

These policies lapse without value if the payments cease but if payments continue and a claim is made the full amount of the claim is payable to the bankruptcy estate as a vesting asset.

The RTLU Group consider it is important to ensure debtors are fully aware of the implications if they continue to pay the premiums for policies which were in force at the date of the bankruptcy order. Pro-forma letters explaining this and providing the alternatives available for dealing with policies have been drafted (copies below).

The options available to the debtor are:-

• Cease payments – the policy will lapse with no value.
• Purchase the trustee’s interest in the policy for a consideration equivalent to 12 months premiums.
• Continue payments

The following procedure has been agreed:-

• For each policy held by an individual debtor the local office dealing with the bankruptcy should write to the Insurance/Assurance company in the normal way to obtain confirmation of the type and value (if any) of the policy.
• Where the policy is a “no value” policy the local office should write to the debtor using the appropriate pro-forma letter and asking them to decide how they wish to proceed.
• Where the debtor wishes to “buy out” the trustee’s interest or continue payments the case should be sent to the RTLU to deal with the “sale” or monitor for any claim.
• The status of the case at transfer will depend upon the action to be taken a “sale” policy would normally be transferred as an open case, “continuing payment” policies would normally be transferred as a protracted realisation asset at the time the case is closed although this may depend upon what else is in the case.
• Where the debtor indicates he is to cease payments no further action needs to be taken (it is up to the local office to decide if they need to check whether payments have ceased and the policy lapsed without value).
• Where a debtor does not respond to the OR’s enquiry a check should be made by the local office to establish if payments to the policy are continuing, if they are the case should go to the RTLU as a “payment” case (again this will normally be a protracted realisation matter).

Where the RTLU team effect a “sale” of a policy it is important that the Insurance/Assurance company is informed that the OR/trustee has no further interest in the policy and any future moneys due under the terms of the policy should be paid directly to the beneficiary to the policy.

Where the debtor is continuing to make payments to the policy the RTLU will confirm the trustee’s interest to the Insurance/Assurance company providing contact details in the event of a claim.


RTLU Group


And if you really can't sleep:

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part4/part_4.htm

Regards

Richard

NoMoreExcuses

Oh. Ok then. Thank you Richard.