Mum passed away recently and left 2 more payments on her IVA

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jules
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by jules » Thu Jan 18, 2018 10:55 am
Mum passed away recently and left 2 more payments on her iva until it would be finished, only £290. There is no will and I am about to apply for probate. I have been advised by family, not to do this and to hand the property back to the mortgage lenders because of the iva. There isnt much value in the house, about £10K after paying off the mortgage but I am told the creditors can take that towards mums original debt. Is this correct? I dont have a solicitor and am thinking of just handing back the house to avoid any complications.
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Foggy
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by Foggy » Thu Jan 18, 2018 11:29 am
2 more payments ? Has the IVA already been extended in lieu of equity on the house ? If so, it might be worthwhile having a word with the IP and see if you can pay up those two payments to get the IVA completed --- then, in due course once you have the completion certificate, you will be free to do whatever you wish with the house, free of the old unsecured debts.

If the IVA is not completed then the debts will not be written off and will need to be settled from the estate -- which, as you rightly say, will eat up any equity there might be.

Do not do anything rash without research. You say there might be only £10k .... but that is still a sum not to be thrown away lightly and, indeed, after the valuations and redemption figures are in, it might be more.
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Ryan
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by Ryan » Thu Jan 18, 2018 11:36 am
Hi Jules,

I echo Fogy's thoughts about not being too hasty with this. Also was there any life insurance in place for the Mortgage?

Regards
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