The debts would become due from the estate of the deceased and unless I am mistaken, I believe the debts take priority to the beneficiaries of the estate.
Just to clarify Melanie's and Cybus' replies. The creditors can only claim what is in the estate of the deceased debtor. They cannot ask a relative to pay off the debts.
I know that this would seem quite obvious to most people, but I have seen quite a few instances where the creditors have made a child or spouse of the deceased feel as though it is their responsibility to repay the outstanding debts and they have done so.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
Just to clarify.
The wife and family of the person who has passed away is not resposible for the payment of the rest of the IVA. Would this be correct.
16. In the event of your death
16(1) Should you die during the term of the arrangement property constituting an
asset of the arrangement in your or the supervisor’s possession, custody or control shall
be held upon trust for the purposes of the arrangement until it is realised.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
