What Happens to an IVA If You Die?

It is very unlikely to say that you will responsible for someone else’s debt if they passed away. However, for joint debts that are partly in your name, you may be asked to repay these. This article answers the question, what happens to an IVA if you die?

You may also want to read our article on how an IVA (Individual Voluntary Agreement) affects your spouse.

What happens to my debts if I die during an IVA?

It is true to say that you cannot inherit someone else’s liability for the debt, you can only have liability for debts that are in your name, or that you have taken jointly, or stood guarantor to. So from the information you have provided, you cannot be asked to pay for her remaining debts.

At the time of preparing and agreeing on the IVA, this situation will have been covered in the proposal documents. You may need to seek legal advice regarding the ability of creditors to make a claim against any property.

Check if you qualify for an IVA

Get Started

The Insolvency Practitioner (IP), as supervisor of the IVA, will terminate the IVA and deal with all matters contained in the proposal and it may be that the proposal defined property and policies as assets of the arrangement. You may also want to read this article on Joint IVA’s.

What happens if I die before the end of the term of my IVA?

There will be a clause in your IVA proposal documentation that outlines what would happen. The IVA protocol states “Should you die during the term of the arrangement property constituting an asset of the arrangement in your or the Supervisor’s possession, custody or control shall be held upon trust for the purposes of the arrangement until it is realised.” If you need to establish exactly how this would work in relation to your assets and your specific situation then you should be able to ask the IP to explain in detail.


Talk to Tad and find out your debt score.

Get Started