My husband has recently passed away. Is this quote to settle my IVA correct ?

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by helen » Wed Mar 08, 2017 10:03 am
MY IVA WAS SET UP FOR £52,000, I HAVE PAID OFF £5800 PLUS THEY HAVE RECOVERED £3500 PPI. my husband has recently passed away and I was wanting to settle with part of the life insurance. THEY ARE NOW SAYING I WOULD NEED TO PAY £58000 TO Settle. Can you advise if this seems correct.. . Thankyou
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Michael Peoples
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by Michael Peoples » Wed Mar 08, 2017 11:06 am
It is possible that this figure is correct as it would be the debts in full plus costs and possibly interest. However creditors are normally sympathetic in cases of death and may accept a reduced figure if you need funds yourself. Your own IP should be able to explain the options and could call another meeting of creditors.
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by Foggy » Wed Mar 08, 2017 11:40 am
This does look to be the correct order of sum required to settle the IVA, and, I am sorry to say, will be payable as the payout to you will be deemed a windfall. At the very least I would ask the IP to petition the creditors to allow you to be forgiven the statutory interest element, which will make the settlement smaller.
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by luluj » Thu Mar 09, 2017 5:40 am
I am sorry to hear of your loss. Unfortunately the life insurance payment is classed as a windfall - personally I think that is harsh as you have to now be able to manage financially going forwards in different circumstances, however creditors are entitled to their money from your husbands estate. As others have suggested a request for the statutory interest element to be removed would reduce the figure somewhat if approved by creditors.
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