Best Price Endowment > FAQs > Bankruptcy Searches Necessary

One of the most frequently confusing and misunderstood issues is the requirement to make a bankruptcy search.

This is to ensure that the owner of the policy is fully entitled to receive the sale proceeds. The search has to be made at, or very near to, completion of the purchase. It cannot be made earlier in the transaction as the most up-to-date information is needed just before the policy is paid for. The legal process says that the search must be made against all policy owners and even former owners if, for example, the policy has been transferred from husband to wife or a third party within the past seven years. The search may reveal entries by name/address similar to that of the seller and in that case there will be a requirement for the seller to personally sign a certificate stating that the entries do not relate to them.

This certificate may also need to be professionally witnessed depending on the type of entry revealed by the search. The buyer's solicitors will arrange for this to be done at the appropriate time, and will be available to help you right the way through to payment for the policy.