Hello, I am hoping someone can offer some advice.
My MIL has just passed away leaving an IVA which has been running for 7 years. The original amount of approx £28,000 to be repaid has been exceeded and she has paid approx £41,500 back.
They hold a charge on the property, which has very little equity.
We are desperately trying to establish the position with the IVA company.
There is no will and we are reluctant to obtain a grant of representation for fear that any creditors may seek any further money owed from us.
We have been advised by a probate specialist that if the IVA exceeds 20,000 then we will require an insolvency expert to deal with the estate. We are unsure if we are better to allow the house to go into repossession and for the matter to be dealt with from there.
The original debt was £82,000 as as previously stated approx half of that has now been repaid.
Does any one have any advice they can offer on how it may be best to proceed.
You do need to take some advice on this - either speak to CAB or hopefully Lisa Thomas, resident IP on here, will be along.
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
Are there any post IVA creditors that you are aware of, or are all of MILs debts included in her IVA?
ON the assumption the only asset in her estate is the property and it is in nominal or negative equity then the best outcome here would be for the IP to call a variation meeting of creditors accepting payments to date in F&F settlement and close the IVA.
The alternative would be to present an insolvent Administration Order - this is like Bankruptcy for someone who has died.
However this will really not achieve anything as your mums debts are already being dealt with through the IVA so there would be no benefit to do this unless there are other assets or other creditors to deal with that are not allowed for in the existing IVA.
Speak to your MIL's IP and hopefully they will be able to help pave the way to close the IVA down rather than terminate/fail it.
Sorry for your loss. As Lisa says -- speak to the IP, who should be able to assist. With no will, at some stage someone is going to have to be appointed administrator --- the debts will not devolve outside the deceased estate.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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
To the best of my knowledge there are no other creditors, just the mortgage and the IVA.
The charge mentioned on the original IVA is £917 against the property. Am I correct to assume this is the amount they will be looking to take following the sale of the property and settlement of the first charge/mortgage?
My fear is that they won't finalise the IVA, they will mark it as failed and we're unclear if they can then come after us for the remaining balance.
There should not be a monetary charge, usually only an RX1 restriction, which alerts the IP if a sale is commenced.
The IVA is made up of all the individual creditors, it is an arrangement, not an entity in it's own right.
Nobody, IP or creditors can come after you, personally, for any unpaid loans, as long as you were not party to the loans (guarantor for instance). Any unpaid debts will come from the estate before the remaining balance can be distributed to qualifying relatives (without a will there is a hierarchy as to how the estate is to be distributed.
Might I ask which firm the IVA is with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We have managed to get somewhere with the IVA today and they have advised that if we can make 3 payments, just over 1K, which we have in her bank account, this will settle the whole matter.
I sincerely hope they are true to their word as they have said they will confirm this in writing.
I am just sorry that she didn't get to see it finished as she was extremely secretive and I have no doubt this caused her so much anxiety.
Let's hope you get that in writing soon - let us know how things go.
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 suspect you could ask for a variation instead but if there are sufficient funds available it might as well be simpler to make the last few payments so it can be closed in an orderly fashion.
