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.
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
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.
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.
Life insurance pay out for a discharged BR
Posted - 15 December 2011 : 12:03:34
