Dealing With Your IVA Creditors
Will you have to meet your creditors face to face?
We understand the prospect of dealing with your IVA creditors can be daunting. If you’ve been in debt for some time and struggled with repayments, the chances are you’ve also had to deal with phone calls and letters with a demanding or even threatening tone.
Many of our IVA customers tell us the last thing they want to do is meet creditors face to face, so here are a few important points to remember:
Working on your behalf:
- An IVA involves us reaching a compromise with your creditors on your behalf. This means once you’ve spoken to us over the phone and decided an IVA is the best option for your individual circumstances; we’ll pass your details to one of our dedicated Licensed Insolvency Practitioners who will get to work on pulling together a proposal.
- Remember, it’s our responsibility to conduct negotiations with your creditors, helping ease some of the worry you may have about dealing with a potentially difficult situation.
- The proposal will detail how much you owe and how much you can afford to repay based on the agreed monthly contribution you’ve discussed with our IVA advisors.
- The proposal document will be circulated to your creditors and they’ll have the opportunity to attend a meeting, to which you would also be invited. Don’t worry though; you don’t have to attend this meeting. In fact, In fact it is extremely rare for a creditor to attend these meetings preferring to vote by fax.
- Your creditors do not have to attend and much of the proposal can be dealt with by proxy. Once your proposal is accepted, a Licensed Insolvency Practitioner will look after your IVA and monitor your monthly payments. Together, we’ll aim to keep this whole process as simple as possible.
- Once your IVA is set up, there’s no need to worry about your creditors taking any further action against you for recovery of debt.
- Your creditors won’t be able to add any more interest to the amount you owe or apply any new charges.
- By law, your creditors are not allowed to commence or continue with any legal action against you to recover the debt.
- Once your IVA is in place we’ll take over dealing with your debt, so it’s unlikely you will have any more communication from your creditors.
- Many of our customers tell us once their IVA is set up and repayments commence, they feel a sense of relief and more confident in the knowledge they’re regaining control of their finances.