My wife and i have been in an IVA for 12 months now and whilst it's taken some getting used we are happy to get our first year under our belt and ready to move on.
unfortunitly though we found out a week ago that my wife has cancer. we are obviously very concerned as my wife is likely to be off work for anything up to a year. Does anyone know what effect this would have on my IVA as my wife will drop to half pay and then stat pay during this period.
Also does anyone know if a critial illness insurance payout would be taken off us under the IVA
Hi
Very sorry to hear your news.
Have a chat with your IP as soon as possible, I think that creditors would accept reduced payments due to the circumstances without any problems.
If your wife does get paid out for critical illness then I believe that this will be captured by your windfall clause in the IVA. However it could be that creditors will accept this payment as a full and final payment and conclude the IVA
Regards
Hi Shaneo and welcome from me too.
You will need to have a look at the smallprint of the policy and your IP may need to take advice on this. If the critical illness payout is for ongoing care and your wife will not be able to work again, it may be possible to exclude some or all of it. However, if the policy pays out on diagnosis of cancer irrespective of the long term prognosis, it may be counted as a windfall particularly if your wife makes a full recovery and returns to work.
Given that your wife will be off work for some time she will need the money for care and to replace lost income so it could be deemed to be compensation. It may be best to speak to your IP and see if some of the money could be used as a full and final settlement and hopefully creditors will be sympathetic.
Thank you so much for your kind thoughts and advice.
I'll speak to my IP and see what he says. Under my IVA I will pay back my creditors about £50K which if memory serves me correctly was about 55%. The critical illness pays out if certain types of cancer are diagnosed but it's only £25K. I can't see them accepting half or am I wrong?
I agree with Lesley that it is worth proposing. Your surplus income is going to reduce due to no fault of your own and if you could get your IVA completed your wife could focus on her health and not have the IVA to be concerned about. I hope it works out and as I said creditors are normally sympathetic.
I have nothing really to add to the excellent advice provided by other forum posters, apart from to say that our thoughts are with you and especially your wife after such devastating news. Clearly the IVA is of low priority in the great scheme of things, but I would definately arrange an early chat with your IP to see what they can suggest. Given the circumstances your creditors are likely to be very receptive and sympathetic to an offer, but do make sure that your wife's care is adequately provided for in the first instance.
I'm so sorry to hear your news, and my thoughts are with you.
I echo the advice of the others, speak to your IP. I'm sure they will be sympathetic.
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 can't add anything to what the other's have already said, but I wanted to say how sorry I am about your wife's illness and to wish you both all the luck in the world for the future xxx
