My Wife died in 2015 and now told I have to pay a final payment for each of us.

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barry834
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by barry834 » Sun Dec 17, 2017 6:08 pm
My Wife died of cancer in June 2015 and we where both in an IVA which finished last year November 2015.
But my IVA company insist I pay her payments for the rest of that year 2015 from June till November,
plus raise a final payment of £45,000 each. But as I cant now get a mortgage top I am having to sell my house.
Is this correct. Thankyou
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Foggy
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by Foggy » Sun Dec 17, 2017 6:20 pm
Sorry for your loss. Technically your wife's IVA should have terminated on her passing or the creditors asked to wind it up on payments made to date. Termination would have resulted in the debts then being payable from her estate, winding up on payments made to date would have ended the arrangement successfully. Failure to make up the payments now could well result in the IVA being terminated.

Regarding this £45k each ... where on earth has that come from ? Are they talking about equity release ? If so and you are unable to remortgage, then the IVA should be extended by 12 months .... They cannot expect your wife to remortgage nor make payments from beyond the grave and this all needs sorting out by the IP.

To my mind they should put forward a variation to conclude your wife's IVA on payments made to date. Then your arrangement should be extended for 12 months in lieu of equity (as hopefully contained in your agreed terms).

Might I ask who you are with ?
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kallis3
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by kallis3 » Sun Dec 17, 2017 6:27 pm
I have a friend who had problems when her husband suddenly passed away. She successfully managed to get it sorted by arguing with the IVA company and getting it closed down. Hopefully you can get it sorted.

So sorry for your loss.
redboxtree
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by redboxtree » Mon Dec 18, 2017 8:24 am
They have to make a claim against the estate via the executor.

They cannot make you personally liable for any outstanding amounts and have to view any decisions based on the legislation that is now in force.

The only way that I can see them making these statements is if the house was left to you and therefore you have come into an inheritance.

Either way I would seek legal advice if you are the executor.
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Waitingforship
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by Waitingforship » Mon Dec 18, 2017 9:56 am
I have no better advice to offer than that which you have been given from Foggy and others, but would just like to express my condolences for your loss. I hope they can get it all sorted for you.
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Lisa Thomas
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by Lisa Thomas » Mon Dec 18, 2017 10:21 am
Sorry for your loss.

The IVA should have terminated upon your wife's death and her estate should have then dealt with the shortfall to her creditors.

However this could impact o your joint assets.

Given the IP seems to have continued her IVA in error you/the estate/may actually be better off in continuing the contributions instead - the alternative might be that her estate has to pay the full balance of the debts.
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Lisa Thomas
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by Lisa Thomas » Mon Dec 18, 2017 10:22 am
You may want to employ a specialist insolvency solicitor to do a deal with her creditors/The IP. I can recommend one if necessary.
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