Can creditors still contact me during an IVA?
Quick Answer: Once your IVA is approved, creditors included in the arrangement are legally bound by its terms and cannot chase you.
One of the most significant benefits of an IVA is the legal protection it provides. Once your IVA proposal is accepted by your creditors, it becomes a legally binding agreement. All creditors included in the IVA must comply with its terms.
This means creditors CANNOT: contact you to demand payment, add further interest or charges to your debts, take legal action against you (such as applying for CCJs), send bailiffs to your home, or contact you by phone, email, or letter to chase payment.
If a creditor does contact you after your IVA is approved, you should note the details of the contact and inform your Insolvency Practitioner immediately. Your IP will contact the creditor to remind them of the legally binding arrangement.
The legal protection begins from the date the IVA is approved at the creditor meeting. During the period between applying for an IVA and it being approved (typically a few weeks), creditors can still contact you.
The peace of mind that comes from legal protection is one of the most valued aspects of an IVA. Many people report a significant reduction in stress once their IVA is in place and the phone calls and letters stop.
* This information is for general guidance only and does not constitute financial advice.