I am at my wits end for my Mum who seems to be worse off than before IVA.

[Lauradw68]

Hi there,
My parents began the process of entering into an IVA end of 2015 and it commenced on the 31st December. My mum (who is the sole breadwinner, my dad has had numerous cardiac problems over the decade) had a stroke mid Jan, I think all the stress just took its toll. Obviously, the last thing she should be worrying about is money, so I'm trying to help out (I'm a 24 year only student mid exams atm).

She was deferred for critical illness cover which is being appealed now (she has a very good chance of getting a payout due to permanent neurological damage) but she is scared it will all have to go to the IVA, can anyone clarify this?

The IVA was meant to make living circumstances easier, but she recently went down to half pay, and her mortgage company could only lower payments from £700 per month to £500. She is worried sick yet again, but doesn't talk about it as she doesn't want to stress me out!

I just want to be able to help her as best I can. Shes trying to go back to work asap (she is a nurse) but right now, she physically cannot handle it- she has weakness on her left side and is working hard at rehab to recover but is putting herself under a lot of pressure.

I'm at my wits end for her. She also has MS, which is quite well controlled, but it has been exacerbated by the stroke. Its like she is worse off now than before the IVA; shes broke, anxious and fears any money that could come her way will be take for the IVA.

Advice would be really appreciated, thank you in advance!

Laura

[kallis3]

Hi and welcome,

I am so sorry to hear about your parents health problems and hope they improve soon.

She needs to speak to her mortgage company about this and possibly asking for a payment break whilst she sorts things out. I am sure there will be a solution out there for her.

[Shining]

Your parents have gone through a lot, I agree, I'm not sure if the critical illness payout would go in to the IVA or not - maybe someone can clarify how this dealt with for Laura?

[size5]

I would guess that it depends on the cover itself. If it is a policy specifically designed to replace income in the event of incapacity, and assuming any income is ongoing, then I would venture to suggest it would be counted as such, and that your mother will still be liable for payments to the IVA, but possibly at a lower rate.

If the IVA payments have been managed, somehow, in the intervening period, then I would be inclined to think that any backdated payout for her loss is most likely hers to keep. Conversely, if the IVA payments have not been managed, then it is entirely possible that she will be expected to catch up in the event of a backdated payout.

Lastly, should this be a policy which pays a lump sum only but not as a replacement income, i.e. for pain and suffering then that may well be exempt, but could possibly be used to look at a full and final settlement. As ever, the devil is in the detail I'm afraid, so you really do need to liaise with the I.P. to find a solution going forward.

Regards.