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Posted: Tue Nov 04, 2008 12:23 pm
by jandd
If a debtor passes away and they are in an IVA. What would happen to the debt?
Sorry to be so mobid.
Posted: Tue Nov 04, 2008 1:42 pm
by Cybus
The debt does not die with them.
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.
Posted: Tue Nov 04, 2008 6:33 pm
by MelanieGiles
Cybus is correct - in that all assets which are captured under the IVA proposal are held in trust for the creditors within that proposal.
Posted: Tue Nov 04, 2008 7:03 pm
by liberta
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.
Posted: Tue Nov 04, 2008 8:23 pm
by jandd
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.
Posted: Wed Nov 05, 2008 12:34 am
by David Mond
Jandd -Yes
From the Standard Protocol Terms and conditions:
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.