Will an IVA make creditor phone calls stop?
Understanding the IVA procedure...
We receive a lot of calls and emails from the public asking; "Will an IVA make creditor phone calls stop?”
- Once I am in an IVA will the creditors stop making calls and sending letters to me?
- After an IVA is set up the following will happen
- Will my creditors still contact me?
- Can my creditors still issue me with a County Court Judgement (CCJ) after an IVA is set up?
- Who informs the creditors I am in an IVA?
Please note that for consumers considering an Individual Voluntary Arrangement (IVA) or Protected Trust Deed (PTD) or Debt Management Plan (DMP); do not be misled by any claim that implies that when the consumer is on the plan, creditors will no longer contact them. Whilst the debt management company or Licenced Insolvency Practitioner can be appointed to act on behalf of the debtor, creditors are still entitled to contact them if they wish to do so.
An IVA will stop the annoying creditor phone calls from collectors and creditor phone calls will stop. All further creditor correspondence will go through the IP.
Once I am in an IVA will the creditors stop making calls and sending letters to me?
Creditors are still allowed to contact you directly, but ideally they should be contacting the IVA insolvency practitioner direct. Once the IVA is set up it can not and will not guarantee that all phone calls and letters from the creditors will stop. If the IVA Insolvency practitioner follows protocol properly they should stop all contact completely.
Once you are in an IVA any letters you receive from your creditors should be sent to the IP so that they can deal with any queries. The IP will also tell the creditors to stop contacting you.
After an IVA is set up the following will happen:-
- The interest will stop being incurred.
- All creditor phone calls will stop.
- The reduction in the total amount of debt
- Legal protection from creditors as long as the debtor adheres to the terms of the IVA.
Will my creditors still contact me?
Once the IVA creditors begin to receive regular IVA payments through the insolvency practitioner, they will stop calling you and the threatening creditor phone calls will stop. If they continue to call after you are in the IVA, do not refuse to talk to them; instead just pass all documents and relevant information on to the IVA insolvency practitioner. If the IVA creditor phone calls do not stop then ask the creditor to contact the client services department of the Insolvency Practitioner (IP).
Some creditors or debt collector may tell you that they do not accept IVA payments or that they have never been contacted by the IVA insolvency practitioner. Do not worry they are just try to get some money out of you.
Can my creditors still issue me with a County Court Judgement (CCJ) after an IVA is set up?
The IVA is legally binding creditors are so the creditors are not entitled to take action against you. If they were in the process of getting a CCJ then they will have to stop all action.
Who informs the creditors I am in an IVA?
The IP will contact your creditors to inform them of your intentions to enter into an IVA. The IP will explain your situation and present an IVA proposal which will outline the offer of payment to them.
If you wish to discuss the Individual Voluntary Arrangement (IVA) procedure and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.
IVA Guide
- What does it mean if my IVA is not approved?
- What are my options if my IVA is not approved?
- My IVA has been approved, what do I do next?
- My IVA has been approved subject to modification – what does this mean?
- How do I make my IVA contributions?
- My IVA proposal included the provision that I had to sell/realise other assets – what do I need to do?
- I am receiving letters and emails from companies offering me a better solution than an IVA - what are these solutions?
- What do I do if my monthly IVA contribution will be late?
- How do I deal with my creditors once I’m in an IVA?
- How do I deal with additional creditors now that the IVA has been approved?
- What happens if I miss an IVA payment?
- The bank has not transferred my IVA payment - what do I do?
- What happens if I do not inform my IVA supervisor that I can’t make the contribution?
- I'm struggling to make the monthly IVA payment what should I do?
- I've received a 'Notice of Breach' from my IVA supervisor - what does this mean?
- What happens if I’ve missed IVA payments or received a notice of breach and there is no solution?
- Is it possible to finish or settle my IVA early?
- How do I settle my IVA early?
- What is the process involved when offering an early IVA settlement?
- Why would I vary the terms of my IVA?
- What does the IVA variation process involve?
- What happens when the IVA variation process has been approved by creditors?
- What happens when the IVA variation process has been rejected by creditors?
- How does an IVA end?
- Will I receive any correspondence when my IVA has completed?
- If one of my debts has been excluded from the IVA, am I liable to pay the debt after the IVA has completed?
- When does a creditor debt claim have to be received by when completing an IVA?
- What happens if any additional debt claims is received during the IVA closure process?
- How do my creditors get their money in an IVA and what are the IVA dividends?
- Does the money in my IVA account earn interest and if so where does that interest go to?
- Do I get a report or certificate stating the IVA has been completed?
- How does an IVA fail?
- What is the effect of IVA failure or an IVA failing?
- What happens after an IVA fails?
- What are the costs of an IVA?
- Who pays for my IVA?
- What is the IVA process?
- Who takes care of my creditors?
- Will an IVA make me debt free?
- How an IVA benefits my creditors
- Lifestyle changes during an IVA
- Advice on living with an IVA
- Will creditors contact me?
- Will I my IVA fail?
- Completing an IVA
- Getting credit after an IVA
- Can an IVA make me debt free?
- How to boost my credit rating after an IVA?
- IVA vs debt management
- IVA vs bankruptcy
- IVA vs debt consolidation
- IVA vs administration orders
- IVA pros and cons
- IVA definition
- What is an IVA?
- Why choose an IVA?
- Who is suitable for an IVA?
- IVA benefits
- IVA stages
- False IVA adverts
- IVA compared to Bankruptcy
- IVA compared to debt management
- IVA compared to debt consolidation
- IVA compared to administration orders
- How the IVA got so popular and famous
- Things you should know and do before you start an IVA
- Will an IVA make creditor phone calls stop?
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]