Will an IVA stop creditors hassling me?
 
The short answer is yes. Once the IVA is in place, the creditors can no longer contact you by law.

Not being able to make payments on our debt can be extremely stressful. If you fall short or fail to pay your bills on time, you may be pressurised by your creditors to make a payment as soon as possible. This debt can include unsecured loans like store cards, credit cards and overdrafts, as well as secured debt like a mortgage or a secured loan.

Of course, with a secured loan you have more to lose. A creditor who lends money in relation to the secured debts have the security of knowing that should you falter on your payments, you risk losing your house, car etc. If you should ever default on these payments, your creditors can take steps to repossess the asset that secures the loan. In other words, they have something to fall back on.

Unsecured lenders, on the other hand, do not have this security. Because of this, they charge higher interest rates. So, if you default on repayments on your unsecured debt, creditors will start taking steps to ensure you pay your debt.

When it comes to defaulting on your unsecured loan repayments, creditors will often do everything in their power to persuade you to keep up the payments. It may start with a letter, followed by a phone call, often to your home or even at work. They will threaten to pass your debt onto debt collectors, or sell your debt to specialist debt recovery firms. They may even threaten to take legal action as well.

This can leave you feeling harassed and bullied by your demanding creditors. This is why many people find an IVA that much more rewarding. With an IVA, the harassing phone calls will stop immediately as this is part of the terms and agreements of the IVA. Your creditors will cease to pursue any legal action against you.

If, however, your creditors still insist on harassing you, they are breaking the terms of the IVA agreement. Simply tell them that you are in an IVA and inform your Insolvency Practitioner of such calls. Pass all threatening correspondence to your IP.

An IVA gives you the peace of mind of knowing that such harassment will cease once the agreement has started.

Do you qualify for an IVA?

For more information see:
What is an IVA?



 
 
     

 

 
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