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Posted: Tue Jul 01, 2008 6:07 pm
by steven.w
WHAT WOULD HAPPEN IF DURING THE TERM OF THE IVA, A FATAL ACCIDENT OR ILLNESS RESULTED IN THE DEATH OF THE PERSON WHO SIGNED UP FOR THE IVA
Posted: Tue Jul 01, 2008 6:14 pm
by kallis3
We're with Payplan and they took out insurance on us both so that if we died our IVA's would be paid off.
Don't know what other companies do though.
I'm sure one of the experts will be along to answer the question for you.
Posted: Tue Jul 01, 2008 8:39 pm
by luluj
Whatever is in the estate will go towards the creditors geting their money back up to the value of 100% plus stat interst (8%) - it's classed as a windfall -the remaining is then split amongst those in the will!
We recently did our wills and although we laughed cos at face value we have nothing in the bank etc, by the time both our life insurances pay out etc, either one of us after creditors paid would still be left with around £50k each!
Quickly adds up!
Posted: Tue Jul 01, 2008 8:45 pm
by MelanieGiles
I'm sure I've answered this one today Steven, but just to reiterate that the debts in the insolvent estate, remain debts in the deceased estate and would need to be paid from the assets in the state before monies became available to beneficiaries.
The text following is taken from the standard terms and conditions used in the majority of IVA cases.
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.
Posted: Wed Jul 02, 2008 12:32 am
by plasticdaft
What a cheery subject.