Hi, I look after an 81 year old man. Himself and his wife took out each an individual IVA, he has told me he thinks there is 3 years left, (don't quite understand why he was advised to take this at such a late stage in life) Unfortunately his was diagnosed with cancer and has since passed away. He is still paying his own IVA but cannot afford to pay hers (he has been told he has to) They own their own home outright. He has been told they will force him to sell his home to pay. He is terrified of the future and thinks he will become homeless and is a physical wreck, he suffers with various medical conditions himself (Parkinson's) and is of ill health. Any advice you could give that I could pass on would be very much welcomed. Many Thanks
I imagine the arrangements will be interlocking and, if one fails, the other will too. However they can be separated by the IP. Indeed they should be .... her IVA isn't valid after her passing. This would mean his debts are still under his IVA but hers will no longer be and the creditors will look for payment from her estate, if they are so minded to.
If I were the IP I would seek to have her IVA (and possibly the husband's too) settled by the creditors on a Full and Final, based on payments made to date. This is, basically, going to the creditors, explaining the situation and asking them for "call it quits" and consider the IVA and the debts closed.
Might I ask which firm he 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 http://foggy.blogs.iva.co.uk
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Unfortunately the house is at risk if he cannot keep up the payments and there is the issue of his wife's payments thrown into the mix too.
It might be an idea, if you are both willing and able to, for you to get permission from him to liaise with his IP and find out what his remaining payments are and see if there's a way around this and whether a full and final offer can be made or payments to date accepted.
Are there any other means/3rd party funds that could be used to make a settlement offer?
Alternatively as a last resort perhaps an agreement could be made for a charge to be placed on the property to pass proceeds from any future sale to settle the IVA/debts and perhaps creditors could agree a variation allowing him to continue to live there until his death (sorry if this this seems blunt).
The IVA company acting for the creditors has a claim on his wife's estate and that means they need to get in contact with the executor.
Even if he is the executor, he has no direct responsibilities for maintaining the payments for his deceased wife.
IVA companies are also supposed to have processes in place for dealing with vulnerable individuals.
I am not a believer in just because you get old you do not know what you are doing but in this case any iVA company seeking a contractual arrangement linked to debts would need to take into account capacity.
What they are stating is borderline intimidation.
If anyone has Lasting Power of Attorney (financial) for him I would say get them involved - the IVA company will have no choice but to deal with that person.
He doesn't have the legal responsibility of paying his wife's contributions/debts but unless this can be sorted he is at risk of losing his home if his wife's creditors cannot be dealt with, so he does need to rake responsibility.