What happens to my IVA if I pass away?Nobody wants to think about passing away, or what will happen to their outstanding debts if they do. In this section we have questions and answers incase this should happen.
What happens to an Individual Voluntary Arrangement (IVA) on death?If you passed away during your IVA, it would be cancelled. If you own any property, and you have equity available your creditors may ask that it is sold to pay off the outstanding debts to them. This is something you may need to discuss with your next of kin, if they also have an interest in the property.
What makes an IVA different, is if you have any outstanding debt that doesn’t have a repayment solution in place, the debt can be passed on to your next of kin if there are assets available – leaving them to make payments on your behalf. But with an IVA this doesn’t happen.
What will happen if I become terminally ill during my IVA?If you contact us we will be able to discuss options available to you.
The Insolvency Practitioner would be able to look at solutions available, and see what they can put in place so you don’t have the added worry of your IVA.
What happens if me and my partner are in the IVA and one of us passes away?Most IVAs are individual, and you and your partner are always both responsible for paying a joint debt. So, this means if one of you passed away while completing your IVA the other person would still be responsible for the remaining joint debts.
If this happens, you could speak to your Insolvency Practitioner about your situation, and they will look at what they can do to help you continue paying your part of the IVA. Remember, this still has to be approved by your creditors.
It’s not a nice subject to think about but, if you think your family would need some of this money to cover the cost of your funeral your Insolvency Practitioner may be able to arrange to have some of it kept back for this purpose, to ensure your loved ones have everything they need.
Thinking about the future and what could happen can be difficult, but it’s important that your family is still cared for.
Contact a member of our team at PayPlan today, for free impartial advice.