I applied for and was granted, bankruptcy in July this year and I am currently dealing with the official receiver. The mortgage and house has always been in my wife's name but she took out a joint life insurance policy at the same time as the original mortgage on the advice of the financial adviser. She has paid the premium throughout the life of the policy. The receiver has advised that unless I buy back the policy the full surrender value or proceeds of any claim would be payable to them even after the bankruptcy is discharged. Is this true or would they only be able to claim half of the value given that it is a joint policy?
They have offered me the opportunity to buy it back for £50.00 but this must be done within 21 days and since money has been extremely tight since the bankruptcy I'm not sure I will be able to raise the money in time.
I applied for and was granted, bankruptcy in July this year
Posted - 28 September 2012 : 12:42:57
