My OR's office have just contacted me to inform me that they have now received the information outstanding regarding my life assurance policy but haven't had time to look at it yet. They have said that if there is a surrender value to the Policy they will claim that along with a fee to buy back there interest in it should I want to keep the Policy running.
The policy is less than six months old so I'm guessing that the surrender value will be minimal if any. Does anyone know how much the fee is to buy the policy back from the OR, at what stage it has to be paid and what the surrender value is likely to be after six months? (I have paid 5 payments of £45.00 per month).
My second question today is relating to my property. The OR's office said that my case will soon be passed on to their Relisation Unit who deal with matters relating to property. I valued my property using 'rightmove' and similar properties for sale at the time.
Is there anything that I will need to do at this stage or does the OR deal with everything like obtaining property valuations etc or do I have to provide them with valuations which they could contest or can I contest their valuations?
My property is approx £25,0000 in negative equity with a mortgage and secured loan on it so I 100% know there is zero equity in the property.
First, it is likely that if the life assurance policy is not worth very much, you will be required to pay £50 to buy back the interest from the OR. I strongly suggest that you consider this as you can then keep the policy.
Secondly, it is likely that the Realisations Unit will write to you asking if you wish to buy back your interest in your home. The unit would expect you to furnish them with a current valuation and statements from your secured lenders showing that there is no equity in the property. The Realisations Unit would then request £1 from you plus £226 legal costs in order to "sell" your home back to you and so long as you can continue to make the repayments on your mortgage and secured loan, the Insolvency Service would have no further interest in your property.
I will definately be purchasing the policy back from the OR because it has 'unemployment cover' built in to it and I think I will be needing to claim on this part of it.
The same with the property, I can afford to continue to pay the mortgage and secured loan so again I will hopefully be purchasing this from the OR as well.
Do you know at what stage the property usually dealt during BR? I am just wondering where I am up in my Bankruptcy journey!!
A lot will depend on when the Realisations Unit receive the file. It should occur sooner rather than later. However if you have heard anything by the new year, I would suggest giving them a telephone call.
Property Realisation Unit
Posted - 22 October 2010 : 11:47:10
