Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

User avatar
By alanmancs
#194989 My first posting after crossing over. :) I'll be moving in with my partner next month and her home insurance policy asks for a declaration that no one who lives there is bankrupt. When she checked with the company she was told that she would not be covered whether I was added to the policy or not - just living there would nullify the policy (as far as I understand it). There's only my contents to cover, which is not that much. :(

Can anyone please recommend an insurer (pm me if me asking is not ethical). Thanks
User avatar
By Ayla
#194992 I've PM'd you as I didn't think it appropriate to put company names in this thread - I don't want to get chucked off the forum - I need all the valuable information on here. :wink:
User avatar
By Red Devil
#195027 Have PM'd you as we had the same problem
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By opsins
#195365 OMG... is this true? I took out home contents insurance before I went bankrupt, is this now invalid? If I made a claim would I get nothing from my insurers? If so, is this only while you are undischarged?

Help!
By Blackandwhitecat
#195390 Would someone mind PMing me any info too? I think my buildings and contents insurance is probably null and void now that Im bankrupt. Im the second named party on the insurance, but think just by virtue of living in the property they would not cover us.
Thanks
User avatar
By TalbotWoods
#195394 Direct Line home contents and Building Insurance allow undischarged bankrupts, but in line with AIB guidance should a claim rise during the time of the bankruptcy, they will need to check with the OR that it can be paid to you. This is done because some people have been know to try and claim for items that the OR has taken!!!

Tim
User avatar
By alanmancs
#195536 So is it by virtue of just living with someone who is not bankrupt, and my name is not added to the policy, her total house and contents insurance will be null and void?

It sounds quite draconian as she has to declare me as moving into her house and that I'm bankrupt and she's not too keen on changing her policy, either. :shock:
User avatar
By jurgenpie
#195540 I have contents insurance does that mean when up for renewal I'm supposed to tell them I am an undischarged bankrupt, surely it should not matter, otherwise if you get burgled or building goes up in smoke you are stuffed!!


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By alanmancs
#195543 You need to check your policy wording or application/renewal form for the declaration mentioned in the first post in this thread. Some companies don't even ask - others might not want to know. If in doubt call the company anonymously. I still don't know what I'm going to do yet!
User avatar
By jurgenpie
#195547 Have just checked the wording no mention of bankruptcy on it, its due for renewal on 12th August 2008, I pay monthly instalments and been paying in 12 monthly instalments of £6.12 so it is in fact a credit agreeement, so will see what happens when renewal forms come through, I was on a IVA for last 2 years and nothing prevented me from renewing each year, will wait and see.


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User avatar
By TalbotWoods
#195562 OK slow down everyone.

before you all go out cancelling your policies and trying to find new ones, here are some points to consider:

1. Read you policy booklets (including the small print!) and see what it states about bankruptcy.

2. In most cases it will either say you have to pay all your premiums upfront (possible) or more likely it will say that in the event of you being declared bankrupt they cant pay out to you - they can only pay out to the OR, UNLESS the OR gives the insurers permission to pay you (and the all will)

3. The reason for this is that it has been known, for bankrupts to claim for items that the OR has taken as assets, and in a few cases people have made claims for high value assets that they had 'hidden' from the OR.

4. If in doubt phone the insurance company and as to speak to someone who understands bankruptcies and ask them directly if there are any problems, just remember though at that stage your name is Mr Smith and your address is next door!!!

In the majority of cases, and this is true of the bigger insurers, there wont be a problem!!

Tim