If you were honest, you’d have to admit that one of the most frustrating and annoying aspects of being in debt has to be the phone calls and letters you receive from creditors. Just the thought of answering the phone or opening your mailbox makes you queasy, because facing your creditors and explaining to them why you aren’t able pay your bills on time every single month is difficult, as well as embarrassing. Many creditors don’t make this process any easier, either. Some will call constantly, become rude when you can’t pay, and may even become threatening if you fall behind on your payments.
When you decide to take charge of your debt and enter into an individual voluntary arrangement, or IVA, you may automatically expect this course of action to stop any calls or letters from your creditors. However, will an IVA actually make a difference?
Does an IVA Stop Creditor Calls and Letters?
When you enter into an IVA, your Insolvency Practitioner will speak to your creditors, most often through written communication, when you are setting up your IVA to let them know how you are handling the debt you owe them and to ask them to speak directly with the Insolvency Practitioner about any further debt matters. While most creditors will accept this change graciously and will leave you alone, there is actually nothing in an IVA that forces them to comply with your wishes.
This means that if they want to, they can still send you threatening letters and call you six times a day trying to collect their money.
How to Deal With Creditors That Continue Calling and Writing
When you enter an individual voluntary arrangement, you need to make sure you understand that creditors can still call and they can still write. Just because you have started an IVA, doesn’t mean you can breathe easy once again when the phone rings.
So, what should you do if you have entered into an individual voluntary arrangement and are still receiving calls from creditors?
- Give Them the Benefit of the Doubt – While it might be frustrating and annoying having to talk to creditors, you need to remember they are only doing their job- and that they can only do their job with the information they have at the moment. Often times, when a creditor is still contacting you after you have started an IVA it means their computer system has not been updated correctly. This means they don’t have the information in front of them directing them to your Insolvency Practitioner. If this is the case, simply inform your Insolvency Practitioner. He or she will make sure your creditors are contacted again and have all the information they need.
- Forward it – If you are still receiving letters from your creditors’ months after your IVA began, make sure you forward all the information directly to your Insolvency Practitioner. You should also let him or her know which creditors refuse to quit contacting you.
- Don’t Pay! – Creditors may only be doing their job, but some may not perform their duties very well. If a creditor tells you that your Insolvency Practitioner isn’t making payments, don’t believe them; they are just trying to scare you into making another payment to them directly. Instead, give them your Insolvency Practitioner’s contact information and tell your creditors they will have to speak to them directly if they are having a problem with the payments.
The author, Martin Bradley says “Phone calls and letters from creditors can be one of the most frustrating aspects of debt, but it doesn’t have to be. While there are exceptions, most creditors are willing to work directly with your Insolvency Practitioner when you enter an IVA, and if they don’t there are some simple steps you can take to end those pestering phone calls.” You can gather more information about all the Harrington Brooks services at their website.