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Posted: Sat Oct 13, 2007 7:38 am
by stephen.c
What happens if the person with the IVA, dies, or loses their job through illness redundancy in the 5 year period?
Do crditors have call on deceased estate?
Can crditors demand the IVA holder arranges protection insurance and pay a single 5 year premium out as part of IP's fees to offest from debt
Posted: Sat Oct 13, 2007 9:46 am
by Phil
Hi Stephen.c in regards to if you die during your iva there may be a clause in your proposal or chairmans report.I have one in mine saying if I die during the term all monies payed in to that point will be paid out to the creditors less ip fees.The rest is written off. In regards to redundancy you may have written into your proposal that you can have a payment break (usually 2 or 3 months)while you look for another job, but check with your ip.
I am not a expert only a person in a simarlar position an expert or somebody with more knowledge will be on later.
P
Posted: Sat Oct 13, 2007 10:10 am
by pixie
Hi Stephen
I have not one but 2 clauses relating to if I die in my proposal! They basically say that a creditors meeting would be called. To be honest I wasn't too bothered about that one!
There are usually clauses regarding missed payments and reducing payments. These should be in the proposal.
If creditors want to indroduce payment protection, that can only be a good thing. It's them that pay and you don't have to worry about the unforseen.
Pixie
Posted: Sat Oct 13, 2007 11:34 am
by Adam Davies
Hi
If there is no such clause regarding death in your IVA then yes your creditors can claim from your estate.
I would welcome an insurance to cover against death,illness and redundancy and believe that John Tegg[Coveritall] will be launching a policy soon.
It would be good to see banks pick up the cost of this or at the worst the debtor to be able to opt for cover by extending his/her IVA for three months
Regards
Andy Davie
IVA.co.uk Spokesperson
About me:
http://www.iva.co.uk/andy_davie_profile.asp
IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp
Posted: Sat Oct 13, 2007 12:59 pm
by Sensible77
My IVA is with Payplan and I have the following clause in my proposal: "Debtors Life Assurance: The Supervisor will assure the life of the debtor through a non investment group policy
whereby Payplan Partnership is the insured and the sole person entitled to make a claim under the policy. The
annual premium will be £60.00 and will provide £20,000 of cover. The payment of this premium will be classed
as a Supervisors disbursement. Payplan partnership will make a claim if the debtor dies during the period of the
Voluntary Arrangement and Payplan partnership will pay any proceeds paid out under and from the policy (up to
a maximum of 100% of the debts owed) into the arrangement. A final dividend will be declared and distributed in
full and final settlement to the creditors. The creditors will have no further claim on the debtors estate. The
Supervisor will not be personally liable in the event the policy is not in place or the insurer declines to make
payment. A copy of the Policy can be requested by the Debtor."
I understand this to mean that up to £20,000 can be paid by this policy if I die with the rest coming from my estate
Posted: Sat Oct 13, 2007 9:57 pm
by Sensible77
Re: my post above. Is it only Payplan who has such a policy?
Posted: Sun Oct 14, 2007 7:33 am
by Adam Davies
Hi
I've not come across any others,and it's good to see it included in your proposal
Regards
Andy Davie
IVA.co.uk Spokesperson
About me:
http://www.iva.co.uk/andy_davie_profile.asp
IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp