What do I do if creditors are still contacting me during my IVA?
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and the people you owe money to, also known as your creditors.
By entering an IVA you agree to pay back all, or a percentage of your debts, over a period of time at an affordable rate.
Creditors included in the arrangement are bound to terms and conditions preventing them from:
- Chasing for debts covered by the IVA
- Contacting you directly about the IVA or the debts included in it
- Adding interest or charges to the debts included in the IVA
That means the people and companies you owe money to are not allowed to contact you and instead should speak directly with the insolvency practitioner (IP) who is managing your arrangement.
You should inform your IP straight away about any letters or calls from creditors or debt collectors included in your arrangement and ask your IP to speak with them on your behalf.
If a creditor or debt collector calls about a debt included in the IVA you should kindly ask them to discuss the matter with your IP and give them the contact details.
What if the creditor isn’t included in the IVA?
If creditors contact you and they aren’t included in the IVA your next steps are determined by a few different factors.
If you forgot to list the creditor when setting up your IVA then the creditor will still be bound by the terms of the arrangement. You should explain the situation to your IP who can use the money you pay into the IVA to pay this creditor as well and advise the creditor in question to speak with your IP directly.
If the creditor isn’t listed in the IVA because the type of debt can’t be included in the arrangement or the debt is for mortgage arrears, you will need to deal with this separately from the IVA. These creditors are still permitted to chase for repayment.
You should speak with your IP for further advice if you’re unsure if the creditor is included or not.
