What if

[whichwaynow]

My I V A will last for 9 months. I have got mortgage protection so if I die the mortgage will be payed so my wife will be secure. The creditors will not try to claim this cover will they? Also I have got a works pension if I die it will pay out a lump sum could they try and claim this from my wife? it will be paid to her directly and not paid to my estate. Sorry to be so gloomy but if my wife died would they then try and claim her equity which had then been left to me ?

[MelanieGiles]

I imagine that the policy has been written to provide that you and your wife's are beneficiaries of each other's claims, but do check the small print and take advice if necessary from a reputable insurance broker.

The same think refers to your pension - if the rights have been assigned to your wife then they should be safe from creditors.

If your wife died and you were to inherit monies these would be treated as a windfall in your IVA.

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

[kah]

If I die - I'm a single parent - can my 19 year old son keep our home. (The mortgage would be covered by a repayment policy payable on my death)

[MelanieGiles]

That would depend upon the terms of your will - if you have made one - and also whether you have any debts at that time. If you die owing money to anyone, your estate is used firstly to pay off those and then any balance is handed to the beneficiaries named in your will or under the rules of intestate estates if you have not made one.

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

[kah]

So my mortgage will be paid by the insurance - and a secured loan that I have will be paid its separate cover. The house has been willed to my son - together with a lump sum from my pension. This lump sum is currently about £10k short of the FULL extent of my debts. My IVA will pay about 46p in the pound - with an equity release clause in year 4. I am inthe 3rd quarter of year 2 at present - so of course these figures will improve. So - am I right in thinking that if my lump sum satisfies the IVA in full (or if I increase my insurance a bit), my son will be able to keep our home. (If you remember any of my past posts - this is an obsession of mine! and yes, I do realise I am lucky to be able to even think of this)

[MelanieGiles]

Hi there

So long as your debts are paid in full, and surplus in your estate, including your interest in the house will pass to your son.

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