my mum was paying an iva but sadly passed away recently. After many thousands of pounds claimed back from ppi the iva started an assessment to see if mum had over paid.
My question is if mum has alife insurance will the iva company want to take aswell?
If she has overpaid then she shouldn't have to pay anything back but, if she didn't pay back 100p in the pound plus fees and possible statutory interest then some of her life insurance may have to be paid across.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Secondly, I'm not sure of the answer to this. We do have Lisa who posts during the week and I'm confident she will give you an expert opinion so do please pop back to check for an update.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
just a thought does an iva superseed the funeral expenses of the person that is in one which more often or not funerals range from £3,500 upwards on a basic one. these days.i find it quite distasteful that family of those who have passed have to deal with this as well as the stress they have to cope of the death of a loved one especially with the posts I e seen on the forum of how the iva companies make life difficult for those who are still with us when they need advice and support I lost my father recently and it was enough dealing with what was fairly straight forward estate . shouldn't the debt die with the person not cause distress and harassment for family who in all honesty may not have even known an iva exsisted. these days life insurance is expensiveand as iva companies do ie each year they are aware of how you pay ito cover your life as if its too expensive they would not allow it as you wil not be paying your creditors enough of a dividend
Unfortunately that's not what happens - money will need to be paid across, a bit like a 'normal' inheritance.
You may be able to use some of the money for the funeral but this is something for you to sort out with the IP.
I agree that is not good the way clients are treated at a time like this. One of our other posters has only just managed to get things sorted out after her husband died last year and it wasn't just the IVA company, it was the mobile phone company who made it worse for her.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lesley_
Would the IVA cease and then the creditors make a claim against the estate?
It depends on the stage the IVA was at --- I imagine creditors could agree to payments made to date and bring it to a conclusion, allowing the deceased's estate to be free of the debt.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Lilaclady2k had to use funds from a friend to make a full and final payment when her husband passed away and it took an awfully long time to sort it out. I don't know how long he had been in the IVA but as far as I am aware they wouldn't accept payments to date.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think that this scenario needs addressing in the same way the iva companys have dealt with the equity in a house. the passing of a person when in an iva is a not that common but I feel the iva companies and creditors should have a protocol in the iva deals with this issue. the same way they have quickly moved with the ppi issue and deed of assignment hounding a dead persons family for money is immoral the debt should die with them as if the person had had the money to pay their debts they would have done it
It would be good if they could have some sympathetic case handlers to sort this out who know how to deal with a bereaved person.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It's not necessarily true that peoplewould have paid if tthey could, if they have equity then their debts should be cleared first. I absolutely agree though thst if there are no assets, closure should be as fast and as simple as possible.
It has always been the case - when someones dies the debt is claimed against the decreased estate. It is only when this /funeral expenses etc are done then the executor of the estate will then disperse any remaining money to the family ,as the Will dictates.
Yes i agree that cases where the persons has died, companies involved should be trained and have proceedures in places to deal with bereaved families.
Any debt write off is of course of the the Creditors, but i dont agree they should be labelled immoral, if this doesnt happen.
Any assets of your mum's estate are first to be used to deal with her debts.
If there are not then the IVA could be at risk of failure and creditors could put your mums estate into an Insolvent Deceased Estate Administration - this is a little like Bankruptcy.
In the circumstances it's best that you contact her Supervisor and try to vary the IVA and bring it to an end if you can to avoid failing it and the risk of the Administration taking place.
I believe that the funeral expenses are considered a reasonable deduction from gross assets in an Administration so you could argue the same (if it became necessary but hopefully it wouldn't) with the Supervisor and creditors.
Do you know how much her monthly payments were and how long she had left to go in the IVA?
Thanks everyone.
Mum was paying £101 per month. She started with about £9500 debt in full.
She paid 4 years at £101 and also had approx £9000 claimed back from ppi.
After speaking to iva company they said they would do a review as I explained mum didn't have long to live. They said to stop mums dd which I did and it's now over 2 months and all I get told is it can take 6 months to tell me if she overpaid.
Surely this is mad as mum is paying 100% of debt plus their fees. I work in finance and it doesn't take 6 months to work out figures
I'm so annoyed as mums funeral is next week and I wanted everything sorted out
