Morbid Question

[thebear29uk]

Hi all

I've been on this forum for about 6 months now and I don't think I've ever seen this question posted before. If it has then sorry for bringing the mood down on a Friday afternoon.

What happens if somebody in an IVA dies before it completes? I'm not thinking of doing a Reggie Perrin but my mum is dealing with an elderly aunt's affairs now she has gone into a care home and seeing how complex this can be (different accounts etc)I would want to have easy to understand details of my financial affairs in place. I have life assurance through work which would cover the mortgage and another top up policy. Obviously paying off the mortgage would leave my property as estate but what could my creditors claim?

Regards

Dave

P.s. I'm in good health and looking forward to enjoying life again in 5 years time. Lol.

[Skippy]

You had me worried there Dave, I was worried that you wouldn't be around to see Man United win the Treble again!

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

[thebear29uk]

No worries on that front Skippy. Just remember how much you need to rely on Dave before you gloat too much if we beat them for everything. Lol.

[Sadsack]

Hi Dave
I am not too sure if this will help, I have a clause in my Chairman's Report which states the following:

"Should the debtor die before the Supervisor has issued either a Certificate of Completion or a Certficate of Non Compliance, the Supervisor must convene a meeting of creditors in order to agree an appropriate course of action regarding the debtors estate or alternatively consult the majority creditors."

Heaven alone knows what that means - if you're dead, you're dead!! Ah the cynic in me!!! Kidding aside. I have a strange feeling that the creditors could claim the bulk of your estate to offset the majority of your debt.

As I am no expert in this but gaining knowledge on a daily basis, I think it would be wiser to take advice from the Forum Experts.

I think I shall be joining you in the celebration of life in 5 years time!! Enjoy the football!

Regards
S

[dcl]

I have a clause in mine that means the supervisor has to arrange £20000 worth of life insurance cover for me and then in the event of death this is taken as full and final settlement of the IVA.

[tracy.h]

H dave,my former contract states the same as,sadsack;i think the bit about the creditors claiming the bulk of your estate sounds about right,i no companys like payplan organise an insurance to run along side your iva,for this purpose,and i have to say Dave i find your posts a real tonic,dont ever stop posting

[ordinary_world]

Gee, I never thought about this!

I doubt there would be much compassion - money talks too much for financial institutions! I imagine (perhaps very cynically) that they would petition for bankruptcy and liquidate anything of value!

If I pass away, perish the thought, before an IVA completed (not in one yet but plan to be) I'd turn in my grave if I thought creditors would be hounding my family or pushing them into poverty....I'd haunt HSBC and Northern Rock for every year thereafter! Also I'd rather they sell my body to medical science for the amount owed and indeed sell my coffin with all the trimmings on ebay as interest if it meant my family were safe!

Seriously though, when taking an IVA are we encouraged to take out payment protection insurance or another life insurance policy? Or are clauses always added that state what would happen in the event of an unexpected disability or death?

(Apologies for adding to any morbidity here but it is an important issue to consider isnt it?).

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

[ordinary_world]

note - just read the following thread which was very pertinent:http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=2422

Best

OW

- 'I wont cry for yesterday 'cause there's an ordinary world somehow I have to find...'

[thebear29uk]

Hi OW

It was that thread that prompted my question. It seems Payplan have it covered but others merely have accident/sickness/unemployment cover and some have nothing. More evidence of differing criteria within the IVA industry. Some creditors insist on you cancelling such things as Critical Illness cover and Life Assurance to increase the dividend in an IVA. Yet some allow separate schemes just to cover the IVA itself.

Tracy.h thank you for your kind comments. I will definitely continue to post. Somehow I think this site will get me through the next 5 years.

Dave

[CoverItAll]

Good morning all,

Cover is available against Accident or Sickness where your IVA payment is made until your IVA is discharged after 60 months, against Redundancy where it is paid for up to one year, and if you die the policy pays a total of 60 months IVA payments to your estate, if Creditors will agree to pay for it.

We are partnered with a major firm of IFA’s not targeting Debtors to sell policies, but targeting Creditors and those who act for them to voluntarily accept a lower Dividend to fund this cover. Our campaign contains three simple statements.

As 30% of IVA’s fail through Unemployment:
CREDITORS accepting a Dividend of 49p will actually receive only 34.3p
INSOLVENCY PRACTITIONERS – will receive only 70% of their fees.
DEBTORS – another 30% of Debtors in an IVA will become Bankrupt.

IVA failure is in no-one’s interest. Accepting a 6.3% reduction in Dividend to fund cover actually increases the real Dividend by 8.4%

Our challenge and our mission is to have Creditors volunteer this course of action to Insolvency Practitioners.


John Tegg
Accident and Sickness cover that pays for up to 60 months for Clients within IVA's.
Tel: 0845 673 9999
e-mail: quotemeplease@asu4iva.co.uk
www.asu4iva.co.uk