death of person

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wwp8

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Post by wwp8 » Tue Jan 09, 2007 1:28 am
what happens if either 1 of the 2 parties that have started an iva dies?

and what happens if both dies.

,my parents are 70 and 66 they have started their iva ,
 
 

accgroup

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Post by accgroup » Tue Jan 09, 2007 10:10 am
Hello

First of all, I'm surprised that your parents have just started IVAs at 66 and 70 - are they both still working? How are the IVAs being funded?

It's quite unusual for people to be entering IVAs at such an age, unless their IVAs are based on a one off lump sum contribution?

An IVA is an individual agreement with your creditors so each of your parents will have their own separate IVA, although the 2 will be interlocking. The terms of the IVA will provide for what happens in the case of death. You will need to have a look at the IVA proposal documents and any additional terms and conditions attached or added by creditors in the modifications - these will appear in the "Chairman's Report" of the creditors meeting which approved the IVA.

The only other way to find out is to speak to the Supervisor of the IVAs - the insolvency practitioner dealing with the case - who will be able to advise you on the specific terms.

Hope this helps



AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com
 
 

MelanieGiles

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Post by MelanieGiles » Tue Jan 09, 2007 9:07 pm
What generally happens is that the debts of the deceased remain in the estate of the deceased. The acting IP will then look to see whether the surviving partner can continue with their own IVA, whether it can be varied or whether it should be brought to a conclusion.

Do your parents have any life insurance, as I normally ask for this to be present, and assigned to the voluntary arrangement, in cases for older clients. This gives further security to each partner, and can generally be sourced fairly cheaply.

Following from the advice you have received from Accuma, you should read the specific terms of your parents voluntary arrangement for the absolute answer, and take specialist legal advice if this is not clear.

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