If a person is in an IVA and dies

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Tessa.hd
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by Tessa.hd » Wed Jan 20, 2010 5:55 pm
If a person is in an IVA and dies, can the creditors request interest on the arrangement from date of starting the IVA?

 

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Shining
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by Shining » Wed Jan 20, 2010 7:13 pm
Hi Tessa and welcome to the forum, I've no idea of the answer to your question but will bump this back up so someone who can answer sees it.

 

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Cybus
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by Cybus » Wed Jan 20, 2010 7:25 pm
Tessa.hd wrote:


If a person is in an IVA and dies, can the creditors request interest on the arrangement from date of starting the IVA?


I believe the creditors can claim from the estate to the extent of 100p in the £ plus statutory interest, which is currently at 8% per annum.

However, I'm rusty on statutory interest, but there should be something in the body of the proposal to deal with the estate in the event of death.

 

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MelanieGiles
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by MelanieGiles » Thu Jan 21, 2010 12:23 am
It depends on the terms of the voluntary arrangement.It is unlikely these days that statutory interest would be payable - but death will generally bring the IVA to a conclusion in any case. The IP will then distribute the funds they are holding to creditors bound by the IVA, and the balance of debts will fall into the estate to be paid out of the assets - to the extent that any are available.

 

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menorca
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by menorca » Thu Jan 21, 2010 6:53 am
Morning Melanie, what about if your IVA has life insurance included?Does this not conclude the IVA?

 

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MelanieGiles
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by MelanieGiles » Thu Jan 21, 2010 9:55 am
Yes - so long as the terms of the policy cover this eventuality.

 

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orange
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by orange » Fri Jan 22, 2010 2:42 pm
we have life assurance and this covers our iva debt and mortgage.How would relatives know about the iva though if we were to die together

 

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jos
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by jos » Fri Jan 22, 2010 3:16 pm
Did not no you were allowed life insurance in an IVA ?

 

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orange
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by orange » Fri Jan 22, 2010 4:21 pm
melaine are you allowed life insurance?

 

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kallis3
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by kallis3 » Fri Jan 22, 2010 6:07 pm
I think you can have life insurance. We're with Payplan and they pay for insurance for both of us so that if either of us dies, the IVA for that person is paid off.

 

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MelanieGiles
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by MelanieGiles » Fri Jan 22, 2010 8:19 pm
Most definately - for anyone with a spouse and/or children I always like to see some form of policy in place - although unlike Kallis' IP I don't provide it as I tend to stick to what I know.

 

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kallis3
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by kallis3 » Fri Jan 22, 2010 8:25 pm
It is only for £20k and if you have pre existing conditions then you're not covered, but as it doesn't cost us anything then that's fine by me.

 

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Cath
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by Cath » Sun Jan 24, 2010 5:11 pm
We have life assurance and also critical illness which we were allowed to continue with in the IVA. I feel it would be madness not to be covered in the event of death or critical illness, especially if you have a young family.

I know your hubby is an underwriter's nightmare Kallis so thankfully you have cover for your IVA x

 

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Cath
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by Cath » Sun Jan 24, 2010 5:12 pm
We have life assurance and also critical illness which we were allowed to continue with in the IVA. I feel it would be madness not to be covered in the event of death or critical illness, especially if you have a young family.

I know your hubby is an underwriter's nightmare Kallis so thankfully you have cover for your IVA x

 

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Shining
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by Shining » Sun Jan 24, 2010 6:07 pm
I have some with work but that's all and I do agree I should have more and will be sorting my life out totally in a lot of areas post IVA x
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