I have an existing iva agreed in 2016 £12,000 which i have been paying £200 per month.
I thought cashing the small pension i have and paying off the debt balance would be it .
I have a pension cashed in a small one £31,00 and small monthly income.
I thought i could ring the iva company pay off the debt and be done with the stress and close the account. This is not the case and i now have to write to request consideration to do this.
Im struggling to understand my position here and what i write in the letter. They mentioned on the phone 100p per £ extra to close my agreement.
What do i do .
My letter , can it just say how much do i owe? And i have the money? They want to know what i intend doing with it?
If you cash in your pension that sum will be payable into the IVA on top of your £200 per month, as this will count as a windfall. So you cannot use this to end the IVA early. Have you actually done this already and have the money, or can it be stopped ??
There are two ways to end the IVA early with a lump sum: Settlement,in which you pay what is left of the debt, plus fees and possible statutory interest ( which it what, I assume, your IP is talking about). Or, more commonly, a full and final offer, which is based on the amount left to pay under the terms of the arrangement --- remaining payments multiplied by the monthly amount.
During an IVA you don't just owe the £12,000 (in your case) but still owe the full original debt (plus those fees and interest).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk