My wife is now terminally ill

[desperado]

Hi all
New to forum. first post.
I and my wife are both in ivas for last 5 months.we have joint mortgage, income and expenses but we are in separate iva each. (although one of the clauses mentions that 'the debtor is jointly and severally liable for a proportion of the debt with her spouse'). My wife is now terminally ill and in the likely event of her passing away raises number of questions.
1. What will happen to our ivas?
2. mortgage will be paid off, is it classified as windfall? Do I have to pay all original debt?
term and conditions on iva paperwork state that the superviser has arranged insurance and 'should the debtor decease during the period of iva creditors will have no further claim on the debtor's or spouse's estate'. experts, please help!

[Soulgrowth]

Desperado ... just wanted to say welcome to the forum ... I'm so sorry to hear about your wife, this is one of those situations when the realistaion occurs that people are much more important than money. One of the experts will be along shortly with some sound advice but I just wanted to say that I am thinking of you both and do pass on the regards of us all here to your wife.

Debbie

[buttercup]

Hi

I just want to say how sorry I am to hear of your situation. You must be very worried about so much.Like Slowgrowth said I expect an expert will be along very soon.

[chris.g]

Hi and welcome to the forum.
I can't offer any advice, I just wanted to say that I'm so sorry to hear of your wife's ill health, my best wishes go to both of you.
Someone will be along soon to answer your question.
xxx

[Lisa2009]

Hi and welcome.
Im so sorry to hear about your wife, it must be such a worrying time for you both.
I'm sure one of the IPs who post on the forum will be along very soon to answer your questions.

[debbiw]

Just to add to everyone else, I am so sorry to hear the news of your wifes ill health. I hope you get the answers that you want. I wish you both every luck in the future x

[Skippy]

I just wanted to say how sorry I am to hear about your situation, and I wanted to send you and your wife my best wishes x

[ianmillington]

Dear Desperado

Firstly, let me say how very sorry I am to hear of your situation.

I can give you some very general advice here.

If you have a life policy which is formally assigned to your mortgage lender, then I can't see how that itself would be classed as a windfall. However, as a natural consequence of repayment of the mortgage the equity in the property will increase, probably dramatically. How that affects you will likely as not depend upon the terms of any remortgage clause to which you are subject either in the proposal or by way of modification. Clearly if there is an obligation to remortgage then theoretically at least there is a far greater potential sum available.

If the insurance policy was simply intended between you to (amongst other things possibly) repay the mortgage but was not formally assigned to the mortgage lender, then that will be a windfall and (again depending upon the terms) will be used to repay the debts and may well involve the payment of interest too.

However in your final paragraph it would seem that the Supervisor has agreed to effect insurance for you and based upon that wording it would seem that the intention was for the creditors to claim against that and only that, leaving everything else untouched. However, that might have been modified by the creditors meeting so you will need to look at the Chairmans Report of your creditors meeting.

That's my general advice to you. I strongly recommend that you immediately discuss the situation with your Supervisor to see how the specific terms of your arrangements deal with the situation. I am sure that the Supervisor and his staff will do their best to help you during this very difficult time. Hopefully they will tell you that the term you have set out at the end of your post will hold good.

Any further questions, please don't hesitate to come back.

Ian

[desperado]

Thanks everyone for your support and good wishes. Appreciate it.
Thanks for your advice Ian.

desperado

[cr15py]

I'm also very sorry to hear about your wife desperado. Must be a very difficult time, all my best wishes to you both.

[ianmillington]

You are very welcome.

Do feel free to come back if you need anything further.

Ian

[markss]

Hi I am sorry about your situation and really hope your wife pulls through. must be a difficult and worrying time for you both. times like this make you realise that life is more valuable than money. hope all goes as well as it can for you. Howard

[ray_a]

Sorry to hear the news about your wife.

I think everyone involved in your case ie your supervisor will have some ideas and as Ian says if the life cover can sort the mortgage aspect out and clear the liability then you will be able to remortgage yourself out of the IVA which must be some help in lowing your monthly outlays.

Although I think we would have all preferred not to be in this position!

[TREES57]

Hi just wanted to send my best wishes to you and your wife and i'm so sorry to hear of your situation.It does put things into perspective,try to stay positive xxxx