What happens if a debtor dies during an IVA

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derek149
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by derek149 » Fri May 25, 2018 4:03 pm
WHAT HAPPENS TO ANY OUTSTANDING IVA DEBT IF THE DEBTOR DIES WITHIN THE IVA PERIOD?
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Foggy
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by Foggy » Fri May 25, 2018 4:10 pm
The IVA will terminate and the creditors will pursue the debt from the deceased's estate, as they would if the IVA wasn't in place. Debts take precedence over bequests and if there is not enough in the estate to cover the debts they will be written off.
In some cases the IP might petition the creditors to close the IVA on payments made to date, which is always worth asking. In that case the debts will be written off as though the IVA completed successfully.
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