My Father died in Feb 2011 the balance from his personal account was paid by cheque to my Mother.
In Feb 2011 I contacted my Fathers IVA Company and was advised to forward them a copy of my Fathers Death Certificate and that would be our only correspondence – the companies who entered into the IVA with my father would be contacted and his account with each would be closed, although I would receive the death certificate back and an acknowledgment to the close of the IVA.
Due to difficult circumstances it was several months later before I contacted the IVA Company again as I had not received a letter. The IVA Company explained they had no record of the initial conversation or the death certificate and it was not their responsibility to contact the debtors.
Having several letters of correspondance via my solicitor this is the story so far:
30 months on I am no further forward with the IVA company or the companies who entered into the IVA with my Father. My Father’s IVA and I are in a kind of stale mate, where I am advised not to dabble with his estate and the companies involved in the IVA have not assumed or requested rights to enable them to divide the sum left.
No one person or organisation or legal body are able to tell me how to successfully close my Father’s IVA, they can only advise of the problems or situations that may be incurred. In the mean time my Father’s mail is redirected to me so I receive the letters for the outstanding balances and my Father’s estate is left open with no end in sight.
Is there an ombudsman or a legal body or ANYONE who can tell me what happens to an IVA/how it is closed when the owner of the IVA dies mid term- surely my father can not be the only person to have died while paying an IVA.
I'm sorry to hear about your fathers pasing, this must've been an awful time for you.
If a debtor dies during the term of the IVA, then a copy of the death certificate along with a covering letter to his IVA company should suffice. The IVA company will then write to the debtors creditors to advise them of your fathers passing and the IVA will be terminated. The creditors will then have to independantly claim from your fathers estate. This is what should've happened.
I am so sorry to read of the loss of your Father and the ongoing issue you have in closing his IVA, I can only imagine this must be making things more difficult for you than they already will be at this sad time.
Hopefully the IVA company you are with has a representative on here who may be able to intervene and help to being this to a close for you asap. Who are you with?
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
I find it pretty hard to believe how this company is handling your father's IVA - at such a sensitive time initially and it is now over two years further on.
The effect of your father's death is to automatically terminate the IVA. An IVA is a contractual agreement and when a party to a contract dies, then the contract is null and void. The monies your Dad would have paid into the IVA, however, are held in trust for the creditors in the IVA, and should be distributed. Any remaining balance will need to be dealt with under the Insolvency of Deceased Estates legislation - which is not the responsibility of your IP, but I do recommend that you take legal advice on this matter.
The company dealing with my Father’s IVA is Grant Thornton.
Melanie - you mention Insolvency of Deceased Estates - is this a specialist field, who are they or is this a process, could you elaborate further please?
Melanie, Tina and Clare thank you for your replies.
Hi Fiona - the Insolvency of Deceased Estates is a piece of legislation that covers any outstanding balance of monies owing to creditors. Discuss this with your solicitor if you have one instructed to administer your Fathers estate as they will need to take the balance of the IVA into account.
Karol posts on here from Grant Thornton so she may be able to pick this up however she hasn't been on for a while so may be away. you can contact her directly via the experts page on the left though.
Please keep us updated how you are getting on and if there is anything we can do.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
