IVA with unDebt.co.uk

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dean757
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by dean757 » Mon Aug 20, 2018 7:03 am
I am in the 3rd year of my IVA with UnDebt.co.uk and have just returned an Income & Expenditure form towards their Annual Review.

The UnDebt adviser who drew up the Proposal in 2015 stating that I paid 'Rent' said that creditors might object to my paying for care costs from looking after my mum; though I had never received any carer's allowance. This adviser then left UnDebt soon afterwards and I don't know if while she worked there whether her colleagues were aware of my care costs situation.

After returning my last I&E Form for the 2017 review, UnDebt emailed me for clarification on where the rent and council tax payments were on my bank statements. Since my mum's death in 2016 the house has been locked in probate; so no Council Tax payments can be taken from hers or my bank accounts.

I have not informed UnDebt of my mum's probate yet as it is still in process with my siblings dealing with it while having POA; and we have no idea from the solicitor as to how much the final settlement will be.

Now I have queries as to my IVA's standing regarding care costs and undeclared probate situations:

(1) Does it still hold that creditors expect claimants to be paying rent, even when they're living with their parents and paying living costs?

(2) When an IP/advisor draws up a proposal listing your outgoing care-related payments as 'Rent' when you're living with your parents while caring for them, how does that affect your IVA in the long term?

(3) If I reply to UnDebt's queries clarifying my 'Rent'/care costs and probate situations, in your experience would it likely have an adverse affect my IVA status?

(4) Once all the details have been gathered and payouts have been made, how would a late probate notice to UnDebt affect my IVA's status?

I'd really appreciate your feedback and expertise on these issues; as it's the first time I've seen this website and I feel it would've helped clarify things two years ago.
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Foggy
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by Foggy » Mon Aug 20, 2018 8:44 am
(1) Does it still hold that creditors expect claimants to be paying rent, even when they're living with their parents and paying living costs?

In this day and age it is reasonable to expect that an adult working child would pay rent / board and lodge to parents. If this sum was used by the parent or her attorney under POA to pay for care that is the parents / attorneys business, not the IPs.

(2) When an IP/advisor draws up a proposal listing your outgoing care-related payments as 'Rent' when you're living with your parents while caring for them, how does that affect your IVA in the long term?

It should not. In your case this rent should still be payable to the tustees of the estate as rent for living in the house --- see the answer to 1) re care-related payments.

(3) If I reply to UnDebt's queries clarifying my 'Rent'/care costs and probate situations, in your experience would it likely have an adverse affect my IVA status?

As before, this is properly rent / board and lodge, so should be acceptable, assuming it is a reasonable amount for that purpose. What it is used for by the parent when living or the trustees of the estate after passing is not the concern of your IP.

(4) Once all the details have been gathered and payouts have been made, how would a late probate notice to UnDebt affect my IVA's status?

Any inheritance you receive in due course would be payable into the IVA. If it brings the amount of payments up to the full original debt, fees and possible statutory interest the IVA will conclude early. If not it will continue as before.

Now -- as your mother passed during your IVA the IP will contend that you became entitled to the inheritance then. It has always been my contention that beneficiaries do not become entitlled until the Will / estate has passed probate and I would argue that point if need be.
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kallis3
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by kallis3 » Mon Aug 20, 2018 9:08 am
I could be wrong but I was told POA dies with the person - this is what happened with my father.
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Foggy
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by Foggy » Mon Aug 20, 2018 9:17 am
kallis3 wrote:
I could be wrong but I was told POA dies with the person - this is what happened with my father.


I couldn't tell you, to be honest. When my dad passed the banks let me continue to act under the POA until the Will was proved and probate granted -- then power transferred to the executors.

The rent / board and lodge which was / should have been paid while the mother was alive, would have been dealt with under the siblings POA . Rent after the passing would fall due to the estate and be dealt with by the appointed trustees in due course. Surely someone would have power to administer in betweentimes.
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kallis3
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by kallis3 » Mon Aug 20, 2018 9:53 am
My parents rented but we were told by Nationwide that it died with him - we didn't have to go through probate.
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