| Author |
 Topic  |
|
|
Pauline.eb
Starting Member
3 Posts |
 Posted - 11 October 2011 : 15:41:16
|
| I was declared bankrupt on August 13th 2010. My income at that time was a payment by HSBC life due to illness. I had been ill since august 2009 and after rigerous evaluations HSBC helped by replacing a proportion of my previous income. In my worst nightmares I had not anticipated being ill for so long and on my iniial forms had listed the payment and estimated it would be paid for a couple of months. A year has passed as I have struggled to get my health back & deal with marriage break up and taking on full responsibility for my kids. I have sent in my ingoings and outgoings based upon this income months ago. They have just written to me today to say that from now on HSBC have to pay them the full amount not me. This means I have nothing to live on apart from ESA and child tax credit. This was a personal income protection plan I had paid privately over the previous 10 years and was to help me if I ever became ill. I have 3 children and I am now a single parent. I rent a house and they are 16 (at college, 20 (at university) & 21. My 21 year old is disabled and when she is home from her special needs college I am on 24 hour duty. I just can't cope anymore. How am I supposed to survive if they take all my income? If I was earning would they do the same? This month I won't be able to pay my rent or council tax which the policy essentially covered. With the policy payment I was just on the threshold of housing benefit - getting about £5 week. I took responsible steps to take care of myself in a crisis and now seem to being pushed into government handouts,. The insolvency service are putting even further stress on me by taking all my policy and would seem to be encouraging and celebrating illness in order to recieve benefit from the policy. Has the world gone crazy or is it just me alone. I really can't do this anymore. Help! |
|
|
debtinfo
forum expert
2826 Posts |
Posted - 11 October 2011 : 17:39:42
|
| ok, just wanted to give a quick answer, i will go and look this one up for you and see what i can find, one thing you need to realise though is the number of children or their circumstance does not come into it, dont take it personally, it will simply be a case of the money vesting in the bankruptcy or not, it really doesent matter what the other circumstances are |
 |
|
|
debtinfo
forum expert
2826 Posts |
Posted - 11 October 2011 : 17:50:43
|
| Is this an annuity that has been paid for by the life policy? |
|
|
|
Pauline.eb
Starting Member
3 Posts |
Posted - 11 October 2011 : 18:04:43
|
Its just an income protection plan designed to pay me if I am unable to work because if illness and stops once I get back to work
|
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 11 October 2011 : 18:40:54
|
| hmmm, i cant find anything specific to this situation but would guess the whole policy would simply be classed as an asset and so they could claim any payout from it, You could ask them to provide the specific reasoning for their decision |
|
|
|
Pauline.eb
Starting Member
3 Posts |
Posted - 11 October 2011 : 19:35:31
|
Thank you for replying. I'm really struggling that being ill creates an asset that the insolvency service then sees it as their right to take. In my head (what's left of it) its a substitute for earnings and should be balanced against my outgoings. Certainly if they then felt I had surplus I could undestand them then requesting a payments plan. Taking it takes the great majority of my income - over 50% and I just sense that when I then have to go cap in hand to housing they will still class it as my income no matter where it ends up.
|
|
|
|
Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 12 October 2011 : 15:52:33
|
Message Preview
Hi Pauline
Unfortunately an insurance policy which pays out money to the policyholder who is unable to work is the property of the bankrupt, therefore part of the bankruptcy estate,I dont think there is debate or argument about that,...... However you have identified this as your income as it replaces income you would had, had you not claimed upon the policy. Income for the purposes of an Income Payments Order is not confined to wages and salary and is widely interpreted and I see no reason as to why these payments from HSBC is not interpreted as Income needed to satisfy the meeting of reasonable domestic needs for yourself and your family, I think you need to question this with the author of your letter, if you are not satisfied you can always go back to the court who have overall control of all bankruptcies.
|
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 12 October 2011 : 16:24:31
|
| I suppose the argument would be that whilst it may be income it is not the bankrupts income it would be the income of the owner of the asset, in the same way that rental income goes to the owner of the property and interest income on cash does as well |
|
|
| |
Topic |
|
I was declared bankrupt on August 13th 2010.
