We are regularly asked this question here at MY IVA Adviser.
Will an IVA stop creditor phone calls?
Let’s face it, creditor phone calls are one of the most unpleasant parts of being in debt. The thought of having to face your creditors over the telephone and explain to them why you are unable to maintain your commitments is excruciating.When you enter into an IVA there are certain things that you will expect to happen, and one of those things will be that your creditors will stop their phone calls.
So, will an IVA stop creditor phone calls?
Well, it is definitely in the spirit of the IVA for the creditors to stop all phone calls to the debtor but, unfortunately, there is actually nothing within the IVA’s terms and conditions that instruct the creditors to refrain from contacting the debtor directly.
This means that even though the Insolvency Practitioner will have written to all your creditors, as part of the protocol for setting up the IVA, informing them to correspond directly with his office with regard to all relevant paperwork or enquiries, there is very little he can do if the creditor does not comply.
Now it should be stated that, in fairness, the vast majority of creditors will stop pestering phone calls and threatening letters during the IVA set up process, before the creditors meeting has been held, and instead concentrate on dealing directly with the Insolvency Practitioner’s office and placing their claim into the IVA.
So what action should you take if one of your creditors are one of the ones that don’t comply with the Insolvency Practitioners request?
The best action to take is to forward all correspondence to the Insolvency Practitioner, and inform his office that one of your creditors refuses to stop contact with you.
If they continue to pester you with phone calls then read our article on how to deal with creditor calls.
Quite often the creditor’s systems have not been updated properly, and therefore the Insolvency Practitioner will see to it that the creditor is contacted again with all the relevant details of the IVA, along with a further request for correspondence to be sent directly to the Insolvency Practitioners office.
If one of your creditors suggests that they have not received anything from your Insolvency Practitioner, or suggests that they will not accept the IVA, then do not panic. Some creditors or debt collection agencies may try to scare you into making a payment to them directly.
In this event, do not respond with a payment. Instead inform them of your Insolvency Practitioners contact details and insist they speak directly to them as you have been instructed to only pay your creditors through the IVA.
For further information in how to deal with creditor phone calls, call you Insolvency Practice directly.
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