Summary: This article explains what to do if creditors that have agreed to the terms of an Individual Voluntary Arrangement (IVA) are still harassing the debtor for repayment.
One of the key benefits of an IVA is that it will stop the constant barrage of phone calls and letters from creditors demanding money. This helps to lower stress levels, allowing the debtor to focus on budgeting for their debt and have a clear path to financial freedom.
Are creditors allowed to still contact me if I am in an IVA?
An IVA is a legally binding agreement. This means that not only must the debtor adhere to the terms, so must the creditors. For those creditors that have been included within the IVA they must not chase the individual for outstanding debt, nor must they try to contact them for any reason to do with the IVA and/or outstanding amount owed. They are also not allowed to add any further interest or charges. All correspondence should be directed through the IVA Supervisor.
What should I do if I am still being harassed by my creditors?
If an individual finds themselves in this position, they should notify their IVA Supervisor immediately, and request they speak to the creditors to stop the trying to make contact. If a creditor phones up, it is important the individual directs them to the IVA supervisor with any queries.
Can creditors not included in the IVA still contact me?
The terms of an IVA will only apply to those creditors that agreed to it to start with. Those that are not included are still able to chase the debtor. Furthermore, if an individual holds multiple debts with a single creditor and not all of that debt is included in the IVA, the creditor can still chase for the debt outside the IVA. It his instance, it is worth seeking advice from the IVA Supervisor to establish what options may be available for any debt not previously included. (Please be aware that once in an IVA, obtaining further credit without prior permission from the IVA Supervisor may be considered a breach of the terms and could result in the IVA failing.)