If you’ve been struggling to pay your debts and you are being chased by debt collectors, collection agencies, and bailiffs, you may be wondering what you can do to get them off your back and start paying back the money you owe in an affordable and realistic way.
A possible answer to this problem is an Individual Voluntary Arrangement (IVA), which is a legally binding agreement between an individual and their creditors. It is a solution that allows a person to repay a percentage of their unsecured debt to their creditors in affordable monthly payments, usually over a fixed term of five or six years. Once your creditors approve your IVA, interest and charges will be frozen and the creditors can take no further action concerning your debt.
What is a Bailiff?
When you have missed multiple debt payments or defaulted with a lender, they will always try to contact you themselves to get payment of the money owed. If they are unsuccessful, they will usually transfer your debt to a debt collector to chase you further. If the debt collection agency is still unable to recover the debt, a bailiff is usually brought in.
If you have been contacted or visited by bailiffs, the likelihood is that you have been struggling with debt for a while. Bailiffs are also known as enforcement agents, and do hold more power than creditors and debt collectors. They are sent to collect money that you owe to a specific entity, for many different kinds of debts, which can include child support or maintenance, general unsecured debt (loans and credit cards), traffic penalties, income tax, or rent for your business premises.
How to Know You Are Talking to a Bailiff
If a person comes to your door claiming to be a bailiff, you should always ask to see their identification. All certified bailiffs must carry proof of their identity, and they must be able to tell you which of your creditors has sent them. If they are unable to provide proof of who they are, ask them to leave your property and only come back when they are carrying their ID.
If the person says they are a debt collector, you are under no obligation to allow them access into your home. However, if the person is a bailiff, and you have provided them with permission to enter your home they have more powers to enter your property via unlocked doors etc.. Read this article for more information on what bailiffs can and can’t do.
Will An IVA Stop a Bailiff?
In most cases, getting an IVA will put an end to visits from bailiffs. However, this will only occur after the IVA has been approved – although it is likely if you show a bailiff your IVA proposal paperwork before your meeting of creditors has taken place, they will make a note to check again after the meeting date to see if your IVA was approved or not. Usually they will stop action if you have put forward a proposal to your creditors. There are also certain debts that are not covered by an IVA, and these could still be susceptible to bailiff visits and action.
Debts that cannot be included in an IVA include:
- Court-ordered child maintenance
- Child support
- Magistrates’ court fines
- TV licences
- Student loans
- Social Fund loans
Once your IVA is approved, your Insolvency Practitioner (IP) will contact the bailiff and stop further action on debts that are covered in the arrangement. However, it may take a little while for your creditors to update everyone so if one of your debts is covered by your IVA but you still receive a visit from a bailiff, you can show them your IVA documents to prove that you have made an arrangement to pay your creditors. Be sure to let your IP know if this happens so they can ensure it doesn’t happen again.
If you are struggling with debt and are being chased by debt collectors or bailiffs, please contact our non-judgmental team at Debt Movement for the best in debt guidance and solutions.
