In a joint IVA, where one of the debtors has passed away, can a life insurance payout be taken and paid to creditors, even if nothing is mentioned about this in the IVA terms and conditions? (This was decreasing cover meant to clear the mortgage, but would it be classed the same as a ppi payout, inheritance etc.) Also, do the monthly payments ever visibly reduce the initial total debt in yearly statements, as in a DMP, or once the IVA 5 or 6 year term is completed successfully, is the initial total debt just wiped out? (Meaning the agreed monthly payments are simply the fees to run the IVA.)
Many thanks in advance for any advice.
An insurance payout, unless for pain and suffering, specifically for replacement of damaged goods, or formally assigned to payment of a mortgage, will likely be looked on as a windfall and taken into the IVA.
The monthly IVA payments do reduce the debt owing, after the fees have been accounted for and according to the agreed terms. Generally the first few payments go towards nominees fees, as detailed in the proposal / chairman's report. After this a percentage of each payment ( typically 15 - 20% ) goes towards ongoing supervisors fees. Any balance is written off at the end of the IVA, if concluded successfully.
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