Grieving and loss Breech of IVA

Samie104 · 4 December 2018 at 7:24PM

Hello,
This is me crying for help! We have an active IVA for about 3.5yrs, always in time and completed annual reports. This was for 25k, in joint name with my husband. March this year we were told he had terminal cancer and didn’t look good, fast forward 7 mths, I lost him 6 wks ago. He has a small life insurance plan,( didn’t cover the mortgage- still in interest only) he got this while alive as less than 12 mth to live, he got people in to do lots of needed house repairs etc, money to our boys for there further.
The company we were passed to, I called 4 times to tell them now states we breeched the contract, I’ve paid them the last bit I had left 16.5K in last 3 days, but she says the whole balance is 24K??
How can that be? What on earth are the fees?
I’m vomiting with worry, they’ve called a
Meeting with the creditors and they said I could be forced into bankruptcy! My house still has 80K owed.

Each time I ask her, she says she’s sorry, I don’t know if I can wait all that time. I’ve had mental health issues for years and this is causing me major problems with that too.
I’m ashamed to tell my family as they all grieve for my lovely husband too. I can’t borrow that amount.

Please anyone been in this similar situation please please help.

S

Please, I’m hindsight I/ we should have called them, but he was trying to help us.
I’m looking at loosing my home, all the money gone, we had already paid 6.5K to them in insulments.

cjv · 4 December 2018 at 7:39PM

Sorry for your loss, you must be suffering greatly and the last thing you need is all this extra worry.

I can not give you advice because I do not want to give you the wrong information, but I would suggest that you do not deal with this alone. There are charity's that can help you, not just with your bereavement, but also with advice on your financial situation.

I think an appointment with citizens advice may be a good place to start, even if all they can do is put you in touch with a charity which can help you further.

Samie104 · 4 December 2018 at 7:57PM

Thank you, I’ve called step change, they were lovely, but couldn’t help as in a signed contract. I just don’t know what to do. I’m so scarred.
S

PrettyKittyKat · 5 December 2018 at 9:18PM

Firstly Samie104, I am so sorry for your loss. Your heart wil be broken right now and the IVA is one worry you can do without I am sure. However, the best thing is to deal with it.

I am extremely surprised that your IVA company are being so unhelpful as there are lots of options for you which would not result in loosing your home.

Your IVA company is correct in saying that a life insurance policy should have been paid into the IVA in full.

From what you have said you have paid £6.5k in payments into your IVA in the 3.5 years it has been active and have now paid £16.5k of the life insurance policy into the IVA also.

How much was the life insurance payout? Just so it can be worked out how much of this you spent?

Was your husband working prior to be diagnosed? did he then stop? This is relevant as if you maintained your IVA payments it could be argued that some of the life insurance money was used in place of his income.

How were the funeral costs paid? Again, this could be argued that some of the life insurance money was used to pay for the funeral, and it is reasonable for an IP to make an allowance for this (A typical basic funeral costs around £5K).

What is your income and expenditure like now? Can you afford to make a payment to the IVA?

If your total debts were £25k then with fees you are probably looking at around £31-£32k to pay 100p in the £. This means you are very close to this so your IVA company certainly should not be failing your IVA they should be putting forward a proposal to help you complete if not affordability or continue on a single IVA if a reduced affordability.

If you are able to answer my questions above I can let you know what option you have and should request from your IVA company.

Samie104 · 6 December 2018 at 11:04AM

My husband was out of work for 5yrs hence the IVA, the funeral was over 5K. We paid 30K to mortgage still leaves 80K for me alone to pay. I’m paying 182 per month,and told them I can still do this. Currently off work still, but back in January.
Should I try to borrow money if I can off family?
I’ve told her I can’t really afford any more and this would make it all stay again.
I wish I had the thoughtfulness to call them when he got it, but we were/ are still in shock

Thanmsnyou in advance

S

Mermaid89 · 17 December 2018 at 6:17PM

Firstly,
Very sorry for your loss, I cannot comprehend how you're feeling.

Secondly,
In terms of the IVA the whole of the 24k would be due as it would be classed as an asset of the Arrangement. As you are in no position to pay the full amount your IVA company will now be holding a meeting of creditors to either allow you extra time to pay the shortfall or to let you pay for a set period of time extra in lieu of these funds. I cannot see where you have mentioned the specific terms of the variation (meeting) hence why it could be either of those options. This meeting will not result in repossession of your home unless you of course stop paying your mortgage.

In respect of your mortgage and your repayments what has your lender said about this and are they satisfied you can continue the repayments on your own?

sourcrates · 18 December 2018 at 9:29PM

Hi,

Can I just ask whose name the debts were in ?

Any in his name would of been written off at time of death.
You could of let the IVA fail, and then made arrangements to pay what was in your name.

Bankruptcy is rarely pursued in these cases.

Jazzyd · 12 January 2019 at 9:09PM

Sorry to hear about your loss.
My IVA company provided free life cover whilst I was in the IVA and would have used that to settle the debt. Might be worth checking if you had this.

X

Grieving and loss Breech of IVA

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