Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Missmich73
    • By Missmich73 15th Mar 17, 3:29 PM
    • 3Posts
    • 0Thanks
    Missmich73
    IVA from deceased sister
    • #1
    • 15th Mar 17, 3:29 PM
    IVA from deceased sister 15th Mar 17 at 3:29 PM
    Please help!!
    My sister suddenly passed away in her sleep aged 40, she had an IVA running and was about 3 years into it paying £250pm.
    I have been in regular contact with the company DFD and now have a contact there who has been very open and helpful.
    She has advised that only 0.18p in the £ is paid to the creditors and when asked where the other 0.82p goes she has replied the below -


    The remaining 82p in the £ remains due to the creditors unless the IVA concludes successfully, at which time the remaining balances would be written off.


    I am confused, why isn't the full £250 paid to the creditors each month....is this not daylight robbery?
Page 1
    • EssexHebridean
    • By EssexHebridean 15th Mar 17, 3:56 PM
    • 7,014 Posts
    • 37,542 Thanks
    EssexHebridean
    • #2
    • 15th Mar 17, 3:56 PM
    • #2
    • 15th Mar 17, 3:56 PM
    I'll leave others who are expert in the IVA field to answer the question but just wanted to say sorry for your loss.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£232.22
    • ~Beanie~
    • By ~Beanie~ 15th Mar 17, 4:04 PM
    • 2,867 Posts
    • 2,022 Thanks
    ~Beanie~
    • #3
    • 15th Mar 17, 4:04 PM
    • #3
    • 15th Mar 17, 4:04 PM
    Sorry for your loss.

    The full £250 per month was being paid to the creditors.

    What happens in an IVA is that the creditors agree to settle for less than is actuality owed, in this case they have agreed to accept 18p for every £1 that your sister owed. So say she owed £20,000, they have agreed to settle for £3,600 provided the IVA is paid for the full 5 years as agreed. The rest (the other 82p per £1) is then written off. Does this make sense?

Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,564Posts Today

6,476Users online

Martin's Twitter