Advice please, I have recently taken flexible retirement and drawn my pension. I have been in an VIA for two years. I have offered to pay my VIA early. I was told that I would have to pay the full amount of the debt, bearing in mind I have had PPIs totalling over 8000 which went straight towards my debt. My original debt was for 18000. I'm confused as to why i am being asked to pay the full debt. What happened to PPI going towards the debt. Also I pay 100 pounds a month towards the debt I have been doing this for 2 years. Any advice please do I have pay the full amount of the debt.
During an IVA you still owe the full original debt, plus fees and statutory interest and they will take any monies due to be paid over up to that amount, if available. I assume they are after the draw down. Check your proposal to see if it specifically excludes pensions and proceeds (some do). If not they will want the draw down and it cannot be used to pay a full and final settlement. If it is excluded that is a whole different ball game and you are free to make a F&F with your money. One firm out there, regardless of the circumstances, does have a habit of refusing to entertain F&F offers, asking for the full balance --- when challenged they have, so far, backed down. Hint: CF
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