Debt after death?

rosyv

I have been in an IVA with a debt management company for 4 years. I am a widow and live on various pensions. I pay a monthly agreed amount and have paid it regularly since 2009, never missing a payment. My question is what happens to this debt when I die? I'm in my 60s and have no assets except my property which is mortgage free. Also, I live in Spain and am a Spanish resident which means that my children will be liable for Spanish IHT. Will the debt management company come after my children for the remainder of the debt? The debt management company is a UK company and the debt originated in the UK. Feedback very much appreciated!

spacey2012

Any assets or estate can be used to pay the debts and beyond this if there is no assets or estate, the debt dies with you.

rosyv

Thanks for that, but would it make any difference if the asset was in a foreign country, as in my case? Properties here are virtually unsaleable at the moment, and it doesn't looke like there's going to be any change in the near future

CLAPTON

how long is the IVA for?

spacey2012

What country was the credit / loan agreement made in ?
Do you hold a Spanish passport ?

antrobus

rosyv wrote: »

My question is what happens to this debt when I die?

Given your circumstances, I think a better question to ask would be what happens my estate when I die?

rosyv wrote: »

... Will the debt management company come after my children for the remainder of the debt? The debt management company is a UK company and the debt originated in the UK. ...

The debt management company will look to your estate. They will not be able to seek repayment from your children.

rosyv

Haven't a clue how long the IVA is for. I pay them £25 pm for 2 loans, totalling about £23k. The loan was taken out in the UK. I am a Spanish resident, pay tax here, but a UK passport holder. Wondering if its worth taking out some life cover in case they come after my estate, but Spanish legislation is very different. Bank accounts are frozen here when someone dies, and they want their IHT based on the property value before anyone gets anything. I don't see how a UK company could actually take a "charge" on a Spanish property but if anyone can enlighten me?