Paying back IVA after death

Elaineturley

Hi, I am currently sorting out my dads finances following his death (Nov last year). My dad had an IVA and although I do not have the original paperwork and do not have in writing the figures involved, I have been told by my brother - who was very close to my dad - that the original debt was in the region of £6k.
Our solicitor (dealing with the estate) tried for around 5 months to get a redemption figure and was eventually given the balance or £15 - 16K. My dads house sold two weeks ago, and two days before completion the conveyancing solicitor asked the IVA company for the final balance. (There was a restriction on the property which meant that it couldn't be sold until the IVA was paid) The reply was that we owed them £23K, and if we wanted to appeal this we could, but the process would take 6 weeks. We couldn't wait 6 weeks! We would have lost the sale of the house and the property would have almost certainly been reprocessed. We had no alternative but to pay them. They also said that there was still one creditor who has yet to come forward with the final figure of what they are owed - therefore they will not give us a completion certificate. Despite this apparent outstanding creditor - they released the restriction on the property and the sale went through.
As co - executor of the will, both myself and my sister would (I think) be personally liable for this debt if not paid from the estate. There are very limited funds left.
Before his death my dad believed there would be around £30k left in the estate after all debts are paid. He obviously did not know how much this company were going to heap on in inflated interest charges.
I am wondering if, like a ppi, there is a case here for a miss-sold IVA.
The fact that we still do not know how much the outstanding creditor is owed, and when they plan to come out of the woodwork. This is holding up getting the estate resolved.
After 11 months of ongoing stress and sleepless nights over the situation, this has started to effect my health, and would greatly appreciate any advice!
Many Thanks.

CKhalvashi

Sorry to hear of your loss.

Any liabilities due at death are payable.

This post from 2010 may clarify this for you. Fermi is one fo the reident debt advisors, and I stand by everything he says.

You will need to speak to the insolvency practitioner, as they will give you the figures.

The debts would have been payable without the IVA in place, as you'll only inherit what's left. If there's nothing left and still money owing, then you don't owe anything further to the value of the estate.

mwarby

Sorry to hear of your loss

It's unusual to take out an IVA for debts of £6k, normally its not advised on debts under £15k(one reason being the fees being proportionally high, which lowers payback, which makes creditor acceptance less likely)

Is it possible that it would have been £6k of repayment due over 5 years(the normal term for an IVA) which would have been £100 a month.

DarenFairh

Sorry for your loss

It might be worth checking if a life insurance policy was built into the IVA. My insolvency practitioners as part of the agreement have got a policy included which means that all of the outstanding debt is cleared if I die during the duration of the policy. I do not have any health concerns so it might be worth checking.

Good luck