| T O P I C R E V I E W |
| Dcoldwell123 |
Posted - 15 December 2011 : 12:03:34
My husband was made bankrupt in 2005, this was then discharged in April 2006. Since then he was paying £80 per month. He passed away a couple of weeks ago and the life insurance company is saying the full pay out will have to go towards the trustees of the bankruptcy. Is this correct? Any advice would be much appreciated.
Thanks |
| 5 L A T E S T R E P L I E S (Newest First) |
| Daniel Griffiths |
Posted - 15 December 2011 : 15:39:07
Hi
I am afraid this is correct the life insurance policy is an assett which belongs to the estate and the trustee is not limited to any time to dispose of the assett, normally clients should be advised to either cancel the policy and take out another post bankruptcy or purchase the policy for a nominal fee of £50. |
| Niobe |
Posted - 15 December 2011 : 14:56:50
Makes no sense to me either. You would have thought that once discharged, if something happened to.him, that you would be entitled to the money.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
| Dcoldwell123 |
Posted - 15 December 2011 : 12:38:59
he has been discharded for 5 years. he took out the life assurance years before he went bankcrupt. it wasnt mentioned by the trustee.
he has continued to pay £80 a month into this policy for the years ince his discharge, he wouldnt have done this if he had been informed that they could come and take it all???? it makes no sense to me.
when would he ever be allowed to be free? if they wanted the policy when he went bankrupt surely they should have sold it there and then, how ca they let him pay into it for the rest of his life than walk in years later and claim it all.
im very confused.
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| Viki.W |
Posted - 15 December 2011 : 12:28:53
Hi,
I'm very sorry for your loss.
If this was a policy he took out after he was discharged, then the trustee would have no claim.
If it was a policy he had taken out prior to bankruptcy or during bankruptcy then it would go to the trustee.
When was the policy actually taken out?
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
| Niobe |
Posted - 15 December 2011 : 12:13:44
Hi and welcome.
As far as I am aware (and I do stand to be corrected) even if he had an IPA this would have ceased in 2009 so anything you receive from his estate after that is yours to keep.
I'm sorry to hear of your loss by the way.
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
xxx |
