Butts Lightning Bankruptcy

24

Comments

  • KellyMM
    KellyMM Posts: 18 Forumite
    edited 5 October 2017 at 10:34AM
    The OR are IMHO very quick,efficient and friendly. There is a lot of misinformation spread on here and elsewhere on the internet and I wonder how much is started by debt collectors and banks wanting to put people off BR.

    I had a similar experience with the OR however recently my circumstances have changed and I emailed my contact at the Southend office to tell them. That was over a week ago and I've heard nothing since.

    My guess is that 99% of the OR's time is spent dealing with the 1% of cases where significant assets are involved. In a way it makes sense. I know for a fact that I had and will have no assets, nor earn enough money until I am discharged (because this is how I have planned it) so why would they waste time and effort on cases like mine? I've not heard a jot since the phone interview on day 1 of my BR.

    Like most public services, the insolvency service has been squeezed to the max by recent governments and it shows. Good for us I guess!

    P.S. They haven't requested any bank statements from me (although perhaps they have looked for themselves), despite credit card use right up to BR. They didn't question my SoA. Nothin'.
  • fatbelly
    fatbelly Posts: 20,380
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    Butts wrote: »
    Asked about my Life Insurance Policy (Term Assurance- No Surrender Value) and explained I would have three options, cancel it, buy it back from them for £50 or sign it over to them for the duration of the Bankruptcy.

    Sounds very professional - well done the OR

    Re the life insurance, buy it back.

    Just had a client try to claim on his deceased wife's policy that they had been paying into for over 20 years. Unfortunately they both went bankrupt 15 years ago and the entire proceeds now go to the OR

    This would have been explained to him at the time but he didn't understand.
  • Butts
    Butts Posts: 1,289
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    fatbelly wrote: »
    Sounds very professional - well done the OR

    Re the life insurance, buy it back.

    Just had a client try to claim on his deceased wife's policy that they had been paying into for over 20 years. Unfortunately they both went bankrupt 15 years ago and the entire proceeds now go to the OR

    This would have been explained to him at the time but he didn't understand.

    I was intending to buy it back. As it has no surrender value I didn't think beyond my discharge in a years time.

    It's a double whammy maintaining the life cover and reducing exposure to to an IPA by the value of the premiums.

    If you do buy it back and peg it before you are discharged are you saying it does not form part of your estate - ie it is like having it written in trust ? -am awaiting letter from Aviva with the options.
  • fatbelly
    fatbelly Posts: 20,380
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    Butts wrote: »
    If you do buy it back and peg it before you are discharged are you saying it does not form part of your estate - ie it is like having it written in trust ? -am awaiting letter from Aviva with the options.

    I think that's sort of right - there are reams about it in the technical manual.
    Once the debtor has purchased the official receiver’s interest in a policy in accordance with form LTBPOL, the official receiver should notify the insurance company that he/she no longer has an interest in the policy and any future monies due under the terms of the policy should be paid directly to the beneficiary to the policy. You may also wish to consider issuing a copy of the letter to the bankrupt.

    Though I guess you would have to make sure that the policy paid out to a named beneficiary
  • Butts
    Butts Posts: 1,289
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    Just when I thought it was all going so well.....:mad:

    I woke up yesterday to find I had no Internet and my Landline was dead.

    I rang Virgin on my Virgin Mobile and got through to someone in India who could barely speak English - why do they employ people not fluent in the mother tongue of those they are supposed to be helping ? Not much help.

    Eventually I got through to someone in the UK who informed me my Account had been disconnected. They asked if I had been in an IVA or other debt remedy. When I explained I had recently gone Bankrupt she said this would be the reason.

    I have been a Virgin Customer for over seven years and my account is completely up to date and I have never made a late payment. No notice was given either verbally or by e-mail text or in writing. Surely this would be a contractual requirement ?

    The Virgin representative just said you should have been warned this might happen.(chocolate teapots come to mind)

    Before I submit an irate missive at "beardys mob" is this normal practice or legal action by Virgin ? How have other bankrupts got on, and how did they find out ?
  • StopIt
    StopIt Posts: 1,470 Forumite
    In their T&Cs I'm afraid.


    I didn't know they actually enforced it, but they certainly can. I'm guessing you can always appeal, but you may not get anywhere. It may be worth ringing potential suppliers who may not have such a clause in their T&Cs.


    http://www.virginmedia.com/shop/the-legal-stuff/terms-and-conditions-for-fibre-optic-services.html


    O. If you break this agreement

    1. We and/or Virgin Media Payments may end this agreement immediately if:
    a. you become insolvent or bankrupt, you enter into any arrangement with your creditors, or if any legal action is taken or threatened against your property;

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • Butts
    Butts Posts: 1,289
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    StopIt wrote: »
    In their T&Cs I'm afraid.


    I didn't know they actually enforced it, but they certainly can. I'm guessing you can always appeal, but you may not get anywhere. It may be worth ringing potential suppliers who may not have such a clause in their T&Cs.


    http://www.virginmedia.com/shop/the-legal-stuff/terms-and-conditions-for-fibre-optic-services.html


    O. If you break this agreement

    1. We and/or Virgin Media Payments may end this agreement immediately if:
    a. you become insolvent or bankrupt, you enter into any arrangement with your creditors, or if any legal action is taken or threatened against your property;

    Don't they factor in your previous record with regard to payments and length of service? This seems rather draconian :eek:

    Has anyone survived with Virgin untouched ?

    Will my Mobile be next ? £5pm Sim Only (Basic 100 min calls / unltd texts)
  • Butts
    Butts Posts: 1,289
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    Well sod Virgin - I've signed up for Now TV - No Credit Checks - worth bearing in mind to anyone in a similar predicament.

    Got their fastest broadband , unlimited UK landline / mobile calls, line rental , tv box and hub all for £13 cheaper than I was paying at Virgin.

    Quite a relief as I don't want a hole in my outgoings to move me closer to a possible IPA :j
  • StopIt
    StopIt Posts: 1,470 Forumite
    Butts wrote: »
    Well sod Virgin - I've signed up for Now TV - No Credit Checks - worth bearing in mind to anyone in a similar predicament.

    Got their fastest broadband , unlimited UK landline / mobile calls, line rental , tv box and hub all for £13 cheaper than I was paying at Virgin.

    Quite a relief as I don't want a hole in my outgoings to move me closer to a possible IPA :j


    A decent result, but I agree that VM are being a bit draconian here.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • Butts
    Butts Posts: 1,289
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    Butts wrote: »
    I was intending to buy it back. As it has no surrender value I didn't think beyond my discharge in a years time.

    It's a double whammy maintaining the life cover and reducing exposure to to an IPA by the value of the premiums.

    If you do buy it back and peg it before you are discharged are you saying it does not form part of your estate - ie it is like having it written in trust ? -am awaiting letter from Aviva with the options.

    Just to clarify for everyone the precise options available and there consequences as laid out in a letter I have received from the OR.

    Quick reminder it is a Term Assurance Policy with no surrender value and the premiums are £45 per month.

    The OR has offered to "sell me" the policy for £50 (very generous:D )

    1.So if I buy the policy and carry on paying £45 month the OR only benefits if I peg it prior to bankruptcy discharge - ie 1 year. After that it reverts to me.

    2.If I don't buy and continue to pay the premiums the OR takes the payout should I peg it right up till it runs out- not just for the period prior to discharge.

    3. I just stop paying and the policy is terminated (moving me £45 closer to an IPA :eek::eek:

    One thought occurs to me - why on earth would anyone choose option 2 ?
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