What does the 100p in the pound mean?

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gary199
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by gary199 » Sat Jul 01, 2017 9:54 am
Hi we have been in an IVA for about 6 years we are now selling our house and the debt company has asked for the whole net proceeds from the sale. On receipt of the undertaking from my solicitor and the cleared net proceeds from the sale they will then request the supervisor remove the restriction from my property.
They have also said should you be in a position to repay 100p in the pound as in the terms of the proposal you should do so. And the same 100p in the pound to the creditors plus interest.
We only owe them about £ 17,650 we have about £77, 000 wants our mortgage is paid back is the debt company try to keep our money why don't they just have the money they are owed in full in stead of all our equity? And what does the 100p in the pound mean ?
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Foggy
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by Foggy » Sat Jul 01, 2017 10:23 am
100p in the pound means that you will be paying back the full original debt, plus the fees and also possible statutory interest at 8% p.a simple. This sum is always due while you are in an IVA and anything not paid towards this is written off at the end. If, during the IVA, you are ever in a position to pay this then that is what you have to pay. It is a pity that you sold so close to the end .... had you waited until the IVA was closed down you would have kept all of the equity.
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Lisa Thomas
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by Lisa Thomas » Tue Jul 04, 2017 3:57 pm
Oh Dear - is it too late to stop the sale? As you are selling your asset whilst the IVA is still going all of your share of equity wi have to be paid in unless and until the total debts plus interest plus total costs have been paid in full - this could be hefty.

You would have been better off either waiting until the IVA was complete and CC issued or putting forward a variation/full and final offer from the proceeds instead.
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