Death whilst in an IVA

[Kazzy E]

Hi Guys. This waiting business is doing me no good. I keep thinking of questions to ask. Does anyone know what would happen to your IVA if you were to die whilst still in it? (Not planning on going anywhere, but suppose you have to think of these things [;)]) Kazzy x

[plasticdaft]

I think that it would end with no liability passing to anyone,although any amount left in your estate would be taken to pay back your creditors.

[MelanieGiles]

Hi Kazzy

This is covered in the terms and conditions which form part of your IVA proposal. Have a look at those and this should make the position clear - but suffice to say that any assets which are held by the Supervisor at the time are distributed to your creditors, and any remaining debts remain within your estate and have to be paid out of any remaining assets before anything could be passed on to the beneficiaries of your estate.

[Kazzy E]

Right, so in my case then, as I own zilch, the slate would be wiped clean with no liabiity to my son. Saying that though, I do have life insurance, so is that classed as money in estate? Kazzy x

[Kazzy E]

Think we may have been typing at the same time Melanie. I will have another read of my proposal to make it clearer. Thanks for that. (Looking forward to Friday!!) Kazzy x

[MelanieGiles]

If you have life insurance, and this has not been directly assigned to another party, then the proceeds of the policy would firstly be used to pay off any outstanding debts.

[Kazzy E]

I get it, that makes me feel better, just didn't want son liable should the unthinkable happen. Thanks Melanie. Kazzy x