Can creditors continue to chase me in an IVA? IVA Issue

Summary: Can creditors continue to chase me in an IVA? - An IVA (Individual Voluntary Arrangement) is a legally binding arrangement and creditors are not allowed to contact you as long as you are keeping up payments and co-operate with the Supervisor of the IVA. Once an IVA has been approved, your creditors have no legal right to pursue you outside of the IVA, so letters and phone calls should stop.

What if they do call?

There may be some calls following the IVA being approved. It can take time for the creditors to update their records. All you need to do is tell the creditor or collection agent that your IVA has been approved and refer them to your Insolvency Practitioner. You don't need to discuss anything with them. After the first few months it should be that all such calls should have stopped.

What about letters?

As above, there may be some letters from creditors in the early weeks post IVA acceptance, but these should stop quickly. Many are computer-generated and will soon cease. If you are at all concerned, you should contact your Insolvency Practitioner.

Creditors selling debts on

Once your IVA has been approved, creditors can sometimes sell your debt on to another company. They are within their rights to do this. The new company may write to you to confirm that they have bought the debt and will be administering it from now on. These letters should be forwarded to your IVA caseworker so that systems can be updated. This won't affect your IVA as the debt itself is still bound by the arrangement, no matter who now owns it.

One letter to be wary of

Some people in an IVA receive letters from companies who specialise in trying to get you to fail your IVA so they can profit from your situation. They may suggest your IVA has been mis-sold or that they have a better solution for you. Always take great care with such letters and take independent advice.