Starting an IVA will protect you from bailiffs. Once the Arrangement is in place, they no longer allowed to call on you and cannot collect payment for the debt you owe.
Included in this article:
- Does an IVA stop a bailiff?
- How quickly can an IVA give protection from bailiffs?
- Is an IVA the best solution to deal with a bailiff?
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Does an IVA stop a bailiff?
All creditors included in your IVA have to stop collection and enforcement action against you once the agreement is in place. They are not permitted to take any further legal action against you.
Any bailiff already instructed must also stop their actions. They are no longer allowed accept a payment from you or take any of your possessions.
Remember, you are only protected from the debts which you have specifically included in your IVA. If you miss one out, this creditor could still use a bailiff against you.
An IVA also protects you against future creditor action. Once the Arrangement in place, they can’t make a new application to the court to appoint a bailiff.
Struggling to get your head round all of this? We can Help. Give us a call (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.
How quickly can an IVA give protection from bailiffs?
An IVA can’t give immediate protection against bailiffs. It will normally take around 4 weeks to get the Arrangement in place.
During this time, if a bailiff contacts you about payment, be honest with them. Tell them you are in financial difficulty and that you are applying for an IVA. Ask them to put your account on hold for a monthly or two to give time for this to happen.
Most creditors will give you a breathing space. However, if a bailiff has already been instructed, they can be more difficult to deal with. Tell them that you are applying for an IVA and you can’t agree to pay them anything at this time. Do not let them into your property.
It can take time for instructions to bailiffs to be cancelled. Where they have already been instructed, it is possible you might still get a visit after your IVA is in place. In these circumstances, inform them they can no longer collect from you because your Arrangement has started. If they persist, contact your IVA company for advice.
Living in rented property? Going bankrupt can give you immediate protection from a bailiff. Talk to us about this option before starting an IVA.
Is an IVA the best solution to deal with a bailiff?
When you are under pressure from bailiffs, it is easy to get talked into starting an IVA. But before you do, just spend time making sure it is the right solution for you.
Remember, you are committing to paying into the arrangement each month for 5-6 years. If you have little or no surplus income and will struggle to make monthly payments, a solution such as bankruptcy where you will not have to pay anything might be better for you.
If you are a homeowner, you might have no choice other than to use an IVA. However, remember that the payments you sign up to at the beginning are not fixed. They will increase if your wages go up or you earn overtime while its in place.
Having trouble with bailiffs? We can Help. Give us a call (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.