www.iva.co.uk

One question which I could not get an answer from the IP that I am with is that if I re-married, I have been widowed for just over 8 years now, and I should die before my IVA concluded, would my now new wife so to speak, who had nothing to do with the original debt be chased or liable for the rest of the IVA?

I wrote to DFD and asked them this question, about three years ago, when I started courting again. To date they have never replied. The absence of a substantive reply has been the main reason why we have put of getting married so far.

James

I am not a number I am a free man

Your new wife would not become liable for debts to which she had not been a party and is certainly not under any obligation to continue with the IVA, however, in the event that you had a life policy that paid out upon death and she was the beneficiary thereof, as the proceeds from the policy would go firstly towards settlement of your own debts, effectively her residual interest would be diminished by the extent that your estate had settled your debts.

If you do die, now your wife could choose to continue the IVA by continuing to make the payments, but frankly there'd be little point, your IVA would just fail and the creditors could not chase you in heaven !

Philip Beck

Licensed Insolvency Practitioner and IVA specialist

I forgot to mention though, if you own a property that was included in the IVA i.e. you had to remortgage it towards the end of the IVA, and you died, then the Supervisor of the IVA could obtain an Insolvency Administration Order under the Administration of Insolvent Estates of Deceased Persons Order 1986, so effectively making you bankrupt beyond the grave, the your property would vest in the Official Receiver to settle the debts. If this situation were to occur, and she would otherwise be the beneficiary of your will, she might want to choose to continue the IVA in order to benefit from the property eventually.

Philip Beck

Licensed Insolvency Practitioner and IVA specialist

Absolutely not - your debts will die with you effectively - or be left to be dealt with from the proceeds of your estate, so if you are a property owner the equity in same would be used to clear these up. Have you thought about ASDU insurance or ordinary life insurance to the extent of your creditors, which should be relatively cheap to source?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I have no property, and don't expect now to ever want to get one, well I am 57 now, so doubt if a mortgage company would touch me. Nor do I have any life insurance policies. As far as I am concerned, once I am dead burn me, and stick the ashes where they like, I wont need this mortal body anymore, I will have gone onto better things.

As I have waited this long a few more months aren't too bad, IVA hopefully over soon, and we plan to marry after that.

James.

I am not a number I am a free man

OK, nothing to worry about, enjoy married life.

Philip Beck

Licensed Insolvency Practitioner and IVA specialist

I hope to. I have now been widowed twice, ho hum!

If it happens a third time do they call me widow t****y?

James

I am not a number I am a free man