Hi we are about to enter into an IVA but just need to know what would happen if one of us died or became seriously ill during it? Like what would happen to any insurance pay out or critical illness would it still be allowed to pay off the mortgage? Also what would happen to pension payments? I know this is morbid but its bothering me how one of us would manage this if the other wasnt here or couldnt work? Also would the remaining party just continue with the Iva unchanged?
I believe there is insurance you can take out as this is something we were considering - we too were worried about what would happen if we were unable to pay the IVA. Your IP should be able to advise.
Thank You I would really appreciate any input and I have my proposal (arrived friday) which I need to return asap as I'm at the horrible stage of letters, emails and telephone calls from creditors. I think I'm happy with the proposal but I'm off work tomorrow and I'm going to go through it with a fine tooth comb as this is a very scary business. The only niggle is the what if? as my husbands brother had early onset alzheimers, was unable to work for a few years and died aged 58 (my husband is 50). I just think I need to know whats ahead although I dont think I have any other option but an IVA
I guess your pension payments would be treated as income, but if you are still working you are allowed to continue to contribute to a pension.
As regard illness cover, we made sure that our life insurance covered us to completely pay off the mortgage and the debts in full if anything happened to us during the iva.
I would imagine that any payout would be treated as either an asset or windfall, but you need to clarify this with your IP directly.
