life insurance

[janot]

We are at present working towards an IVA. we have to sell our house first and find a rental property.

My husband has a life insurance policy that his dad took out years ago and it can be turned into cash. would we have to convert and sell this or can we carry on paying it as a life insurance policy[?]

janot

[MelanieGiles]

If this is an endowment policy with life cover attached, it is most likely that you will need to surrender the policy and pay the sale proceeds to creditors. However, it is important that you find alternative life cover, and this ought to be allowed as an expense of the IVA. What has your IP said about this?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[janot]

We do not have an IP yet as we have not sold our house so can not go forward with an IVA.

As we are going into a rented house would we be able to cash it in and put it towards a deposit as we do not have enough money for that yet or will we get in trouble for this.

janot

[MelanieGiles]

It will need to be declared in the IVA proposal Janot, but if it is less than £5,000 I do not feel that creditors will be too concerned, so long as you can account for all of the monies.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[janot]

I think it is only a small amount around £2000.00. His dad has only paid £2.00 a month for it since he was little. strickly speaking the money belongs to him.

if he can prove he put the money in could he claim it?

janot

[MelanieGiles]

No - because the money was paid for the benefit of his son, but given that the amount is so small and you do need to find a rental deposit, I cannot see a huge problem here.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[janot]

thanks for the help Melanie.

janot