If you’re receiving letters, calls, or emails from creditors after your IVA has been approved, don’t worry — this can be completely normal, especially in the early stages.

Log in to TIG Connect, your customer portal, to see which creditors are included in your IVA.

If a creditor is listed, they’ve already been informed that your IVA is in place.

In the first 3 months after your IVA is approved, it’s common to still receive contact. Creditors often have multiple offices or departments, and it can take time for them to fully update their systems.

• Creditors are required by law (under the Consumer Credit Act 1974) to send you statements every 6 to 12 months, even during your IVA.
• Some communications will state they are issued in line with the Consumer Credit Act 1974 — you don’t need to respond, but it’s a good idea to keep them for your records.
• Sometimes, these communications might show up as “Notices of Sums in Arrears” or “Default Notices”.

Don’t panic! These are just formal reminders to let you know that the debt still exists. It’s the creditor just reminding you of what you owe. Think of it as the debt saying, “Hey, remember me?”

In all seriousness, you don’t need to do anything with these notices. They’re a normal part of the process, and we suggest you keep them for your records, just in case.

But if they start getting a little too friendly or threatening, just let us know. We’ve got you covered.

If a creditor is still contacting you after 3 months — or the letter feels threatening — you can contact them directly.We’ve created a template for you to make this easier – click [this link ‘Template – Creditor Contact’]

If you’ve already contacted the creditor and they’re still reaching out:

• Send us a copy of the communication, including:
  • The creditor’s name
  • The account or reference number

You can do this by emailing us at info@theinsolvencygroup.co.uk or you can upload the document via TIG Connect, your customer portal.

If a creditor isn’t included in your IVA, it may be because:

• The debt wasn’t known or disclosed at the time of setting up the IVA (this can happen — don’t worry).
• The debt is a type that can’t legally be included in an IVA.

• Student loans
• Court fines and criminal penalties
• Child maintenance or CSA arrears
• TV Licence arrears
• Some types of overpayment or fraud-related debts

You’re still protected. Under Section 260 of the Insolvency Act 1986, most omitted debts are still legally bound by your IVA. Creditors can challenge this, but it’s rare, and we’ll work to resolve it if they do.

What to do:

• Send us a copy of the communication, including:
  • The creditor’s name
  • The account or reference number

You can do this by emailing us at info@theinsolvencygroup.co.uk or you can upload the document via TIG Connect, your customer portal.

You’ll need to deal with this separately. Here’s how:

• Contact the creditor and explain that you’re in an IVA.
• Send them a copy of your latest income and expenditure (available in your customer portal).
• Offer to make a small, affordable payment that doesn’t affect your IVA contribution.

⚠️ Important:
If making extra payments affects your ability to pay your IVA, speak to us first — we have support options available (see the Payments section of our FAQs).

• It’s quite common for creditors to sell debts on to third-party companies while your IVA is ongoing.
• If this happens, don’t worry — it does not affect your IVA. The debt remains legally bound by your IVA terms, no matter who owns it.
• If you receive a letter from a new company about a debt, send a copy.

You can do this by emailing us at info@theinsolvencygroup.co.uk or you can upload the document via TIG Connect, your customer portal.

Including rent arrears in an Individual Voluntary Arrangement (IVA) can be more complex because it involves both the legal status of your arrears and your relationship with your landlord. Here’s how it works in different situations:

• Yes, rent arrears can be included in your IVA as part of your unsecured debts. This means the arrears will be treated the same as other debts and will be covered by the IVA agreement.
• Your landlord will need to agree to the terms of the IVA, just like your other creditors. If they agree, the arrears will be frozen, and you’ll make payments towards them through your IVA.

• The IVA will only cover rent arrears up until the point your IVA is agreed. This means that any missed rent payments after the IVA starts will not be included and could impact your tenancy.
• It’s essential to continue paying your current rent on time. If you miss any further rent payments after your IVA starts, it could jeopardise your tenancy.

• Important: Including rent arrears in the IVA does not remove the risk of eviction. If you fall behind on your ongoing rent payments after the IVA starts or if your landlord refuses to agree to the IVA terms, they can still seek possession of your property.
• Clear communication with your landlord is key. Explain your situation and how the IVA will help you manage your debts and ensure that future rent payments are made on time.

• If you’re still living in the property, it’s essential to have an open conversation with your landlord. Explain your situation and how the IVA will help you manage your debts, ensuring that future rent payments will be made on time.

• If the rent arrears relate to a property you no longer live in, the risk of eviction no longer applies.
• In this case, you can include the rent arrears in your IVA without concern for eviction, as you no longer live at the address. The process is similar to including any other arrears, and the debt will be treated as part of your IVA.

If you’re thinking about including rent arrears in your IVA, whether you’re still living in the property or have moved out, it’s best to speak with us. We can provide advice specific to your situation and ensure your IVA proposal is realistic and beneficial for everyone involved.

If you’re still having deductions taken from your Universal Credit after your IVA has been approved, follow these steps to have them stopped:

Identify who is deducting the payment from your Universal Credit award:

First, you need to identify which debt is causing the deductions. If the deduction is for a debt that cannot be included in your IVA, we’ll explain your next steps below. If it’s for a debt that can be included, follow the instructions here to stop the deduction.

Refer to the section on “Debts that cannot be included in the IVA” in our FAQs.

If the deduction is for a debt that cannot be included in the IVA:

• Unfortunately, deductions for these types of debt cannot be stopped through your IVA. You can still follow the steps below to try to stop the deduction, but if the DWP advises they will not stop it, there is nothing we can do within the powers of the IVA jurisdiction.
• If these deductions affect your ability to pay your IVA, please get in touch with us immediately. We have support options available to help you manage both your IVA and any remaining debts (Refer to the “Payments section” in our FAQs for solutions).

If the deduction is for a debt that can be included in the IVA:

• Once your IVA is registered on the Insolvency Register, proceed with the following steps.

Steps to stop the deductions:

1. Wait until your IVA is registered on the Insolvency Register: Before you can proceed with contacting the DWP, make sure your IVA is officially registered. This confirms that your IVA has been approved and is legally binding. For more information, please refer to the “Insolvency Register” section in our FAQs.
2. Log into your Universal Credit journal and request that your caseworker creates a “To Do Task” for you. This will allow you to upload a copy of your Chairman’s Report directly to the journal.
3. Once the task is created and you’ve uploaded the report, send a message to your caseworker via the journal with the following details:

Message to Caseworker:

“I am currently subject to an approved Individual Voluntary Arrangement (IVA). As such, I request that all deductions currently being taken from my Universal Credit be stopped with immediate effect.

I also request that any money deducted from my benefits since the date of approval of the IVA be refunded, as these funds should not have been taken after the approval date.”

1. Check your journal regularly for responses from your caseworker. As you can appreciate, the DWP has confirmed to us that they only communicate via postal correspondence, which can cause delays. They are likely to want this matter resolved quickly, so using your online portal for faster communication can help expedite the process.
2. Once you receive confirmation from your caseworker that the deductions have been stopped, please let us know. We’ll update your account to ensure everything is recorded correctly on our end.

Additional support:

If you struggle with any additional requests or feel uncertain about the process, please get in touch with us. We’re here to help and can assist with any further steps or complications you may face.

If your salary is being deducted directly to pay off a debt, here’s how to proceed:

How the deductions work:

• Your employer is ordered by the court to make these deductions, and they are responsible for ensuring the deduction is transferred to the court, which then pays the creditor.
• If you don’t know who is responsible for the deduction, contact your payroll/finance team at your workplace. They may be able to tell you which creditor the deduction refers to, and if they don’t know, they will have the reference number and the court details.
• Once you have the reference number and court details, contact the court directly to find out which creditor the deduction is for. Please note that we don’t have access to court records due to data protection rules, so they cannot provide us with this information.

What to do once you know the creditor:

• Check if the debt can be included in your IVA: Refer to the “Debts that cannot be included in the IVA” section in the FAQs to determine whether this debt is eligible for inclusion.

If the debt cannot be included in your IVA:

• Unfortunately, there is nothing we can do within the powers of the IVA jurisdiction to stop the deductions. However, if these deductions are impacting your ability to pay your IVA, please contact us immediately. We can discuss support options available to help you manage both your IVA and any remaining debts (Refer to the “Payments section” in our FAQs for solutions).

If the debt can be included in your IVA:

1. Contact the creditor directly and request that they stop the deductions in line with the IVA terms. We’ve made it easier for you by creating a template for this purpose – click [this link Template – AOE Removal].
2. If you’ve already contacted the creditor and they’re still deducting payments: Send us a copy of the communication from the creditor, including:
   • The creditor’s name
   • The account or reference number

We will then contact the creditor on your behalf to resolve the issue.

When you enter into an Individual Voluntary Arrangement (IVA), any arrears on your energy account can be included in the IVA, but you’ll still need to ensure that you pay for your ongoing usage separately. Here’s how this typically works:

• Inclusion of Arrears in IVA:
  Your energy arrears (the debt you owe for past usage) can be included in your IVA, meaning these arrears will be part of your debt repayments as outlined in your IVA agreement.
• Energy Provider’s Role:
  The energy provider will be notified that the arrears are now part of your IVA and that you’ll be making regular payments toward the arrears through the IVA. This means that the arrears are frozen, and no further interest or charges will accrue on the outstanding balance, as long as the IVA is being adhered to.
• Ongoing Usage:
  It’s important to note that your ongoing usage (the energy you’re currently consuming) is not included in the IVA. You will need to continue paying your current bills directly to the energy provider.

• Set up a separate arrangement for ongoing usage:
  Make sure to contact your energy provider once your IVA is approved to explain that the arrears have been included in the IVA. Confirm that they are clear on the distinction between arrears (which will be dealt with through the IVA) and ongoing usage (which you will pay for separately).
• Provide proof of your IVA approval:
  We have already informed your energy provider about your IVA approval. However, if you need to provide further proof of your IVA, you can share a copy of your Chairman’s Report with them. If you need a copy of the report, please reach out to us. Alternatively, you can direct your energy provider to the Insolvency Register to verify the status of your IVA (see the “Insolvency Register” section in our FAQs for more information).
• Make ongoing payments for usage:
  After the IVA is in place, ensure that you only pay for your ongoing usage each month. It’s a good idea to set up direct debit payments for your ongoing bills to make sure you don’t miss any payments. The energy provider may also offer a payment plan for the ongoing usage, so you can make sure that everything is clear and separate.

• If your energy provider is still contacting you about the arrears after they’ve been included in your IVA, you should inform them that the arrears are part of the IVA and should no longer be pursued directly by them.
• Send a communication to the energy provider using our template letter. You can download the template here [insert link – Template – “Energy Arrears”].

If, after this, they continue to deduct payments for the arrears or contact you about further action, please contact us. Send us a copy of any communication you’ve received from the energy provider, and we will follow up with them on your behalf.

Additional Support:

If you’re unsure whether the energy provider has correctly separated the arrears from your ongoing usage or if you face any difficulties in ensuring that payments are handled correctly, please get in touch with us. We can assist you in resolving any issues with the provider and ensure your IVA is being correctly implemented.

If you and your joint debt holder have a joint and several liability debt, the other person is still legally responsible for the full debt even though your debts are being managed through an IVA. This can affect them in the following ways:

1. Your IVA Does Not Include Their Debt:
   • Your IVA only applies to your share of the debt. The debt remains jointly owed, and the other person is still responsible for the full amount of the debt.
   • Your creditors will not include the other person’s share in your IVA and will continue to pursue them for the debt if they are not included in an insolvency solution.
2. The Other Person May Be Contacted:
   • The creditor may continue to contact the other person for the full amount of the debt. While they will not be involved in your IVA, they are still liable for the debt.
3. Debt Recovery on Their Side:
   • If the creditor continues to pursue your co-debtor for the debt, they may receive letters or calls asking them to repay the full amount.

1. Inform the Creditor about Your IVA:

• The co-debt owner should contact the creditor and inform them that you are in an IVA, meaning your share of the debt is being handled through the IVA. This helps clarify that they are being chased for the full amount of the debt, not just their portion.
• The co-debt owner can request that any further action be suspended in light of your IVA, and ask the creditor to only pursue them for their portion of the debt.

2. Provide Proof of Your IVA:

• The co-debt owner can provide proof that you’re in an IVA. This can be done by sharing a Chairman’s Report or directing the creditor to the Insolvency Register (review the “Insolvency Register” section in our FAQs), where they can confirm that your IVA has been approved and is legally binding.

3. Make Payments for Their Share:

• Since the co-debt owner is still responsible for the full debt, they will need to continue making payments towards their portion of the debt. However, after notifying the creditor, they can ensure that the IVA does not affect their ability to make payments for their share.

4. Protection of the Co-Debt Owner’s Credit:

It’s important for the co-debt owner to understand that being linked to a joint debt may affect their credit score if the creditor is still pursuing them for payment, even though the IVA is managing your share of the debt.

When your IVA is approved, your Insolvency Practitioner (IP) begins collecting your monthly payments. However, there is a structured process for distributing the funds to creditors:

1. Initial Payments to Cover IVA Costs:
   • At the start of your IVA, we propose to creditors that we will collect the equivalent of your first two monthly contributions. These funds are used to cover the initial costs of the IVA, including things like registering your IVA with the Insolvency Service and other administrative fees.

 2. Third Payment and Distribution to Creditors:

• • From the third monthly payment onwards, a minimum of 30% of your monthly payment will be distributed to your creditors. This will typically occur around the end of each month.

3. Increasing Distribution to Creditors:

• • Once the full costs of the IVA have been recovered (e.g., initial setup costs), the percentage of your IVA payment that is distributed to creditors will increase. This means more of your monthly payment will be allocated to paying down your debt, as the IVA costs have been covered.

4. Agreed Upon by Creditors:

This process is common in the industry and is something creditors agree to when the IVA proposal is approved. It ensures that the initial costs are covered before funds are distributed to creditors.

When creditors vote on whether to approve your IVA proposal, they can change the terms of the proposal, including how and when payments are distributed. This is done through modifications.

If there were no modifications to the IVA proposal, the distribution process described above will apply.

Understanding Payment Timings:

To get a clearer understanding of when creditors will start receiving payments and any potential modifications to your IVA terms, you can refer to your Chairman’s Report. This will provide you with detailed information about the terms agreed upon and any changes made by the creditors.

If there were no modifications made, the standard distribution process will apply as described.

If you have any further questions or need clarification on how your payments are being handled, feel free to reach out to us. We’re here to make sure the process is transparent and clear for you!

If your creditor has informed you that they are not receiving payments, it may be due to one of the following reasons. Here’s an explanation of why this might be happening:

Claim Status:

A creditor is eligible for payments from your IVA when they have officially submitted their claim. They are required to submit their claim upon the approval of your IVA. However, creditors can submit their claim at any point during the IVA duration.

Once the claim is submitted, your Insolvency Practitioner (IP) will verify it. After verification, the claim status will appear as ‘Admitted’ in TIG Connect, your customer portal.

• If the claim status shows ‘Admitted’, this means the creditor’s claim has been received and verified, and they are eligible for payments from the IVA.
• If the claim is not yet admitted, a reserved balance will be retained for that creditor until the claim is admitted.

The creditor is responsible for cooperating with the Supervisor’s request to provide the information required for their claim.

Reasons Why Creditors May Not Be Paid:

1. Payment Distribution Delay:
   • Your IVA payments are collected by your Insolvency Practitioner (IP) and then distributed to your creditors. However, some creditors use a third-party company to manage their insolvency procedures and collect payments on their behalf. This can sometimes cause delays in the receipt of payments from their third-party to the creditor directly.

2. Creditor Not Included in IVA:

• • Sometimes, a creditor may not be included in your IVA. This can happen if the creditor was not listed in the initial IVA proposal or if they chose not to participate. Don’t worry—we may still be able to help. Please refer to “What if the creditor is not listed in my IVA?” in the FAQ section for more guidance.
  • Missed Payment from Your End:
    • If you missed or delayed a payment to your IVA, this can cause a delay in payments being sent out to your creditors. If your payments are delayed or missed, it may affect the distribution process.

3. Creditor’s Records Not Updated:

• • Sometimes, your creditor may have received a payment but not correctly allocated the payment to your account. Additionally, the creditor may not have updated their records to reflect the fact that you’re in an IVA. This can cause confusion and lead the creditor to believe they should still be receiving payments directly from you.

What You Can Do:

If your creditor is still claiming they are not being paid, here’s what you can do:

• Check your claim status on TIG Connect, your customer portal to confirm if the creditor’s claim has been admitted.
• Inform your creditor that they should be receiving payments through the IVA and that any outstanding amounts are being covered by the IVA.
• If payment delays or missed payments are the issue, please contact your IP to check the status of your payments and ensure everything is on track.
• If the creditor’s records aren’t updated, you can ask them to recheck their system and confirm that payments are being received.

Let us know if you need further assistance! We’re here to help ensure everything is managed properly in your IVA.

To determine if your council tax is included in your IVA, please visit TIG Connect, your customer portal, to check if the council tax creditor is listed. If the creditor is included, you are protected for your council tax liability.

Council Tax and IVA:

• Council Tax Year: The council tax year runs from 1 April to 31 March.
• Payment Timing: Council tax for the year is payable at the beginning of the year, starting from 1 April. This means that the full year’s liability is calculated at the start.

What Happens If You Enter an IVA During the Council Tax Year:

• If you enter into an IVA during the council tax year, you are protected for your current year’s council tax liability up to 31 March of that year.

For example, if your IVA is approved on 6 June 2024, you will be protected for council tax up to 31 March 2025.

• However, it’s important to note that the IVA does not protect council tax for the following financial year. Therefore, council tax for the next financial year (starting 1 April 2025) will need to be paid separately, outside of the IVA.

If Your Council Tax is Not Included in Your IVA:

• If the council tax creditor is not included in your IVA, don’t worry! You can refer to the “What if the creditor is not listed in my IVA?” section in the FAQs for guidance on how to handle this situation.

Let us know if you need further clarification or assistance! We’re here to help ensure your council tax and IVA are managed properly.

To determine if your HMRC self-assessment debt is included in your IVA, please visit TIG Connect, your customer portal, to check if HMRC is listed as a creditor. If so, you are protected for your self-assessment liability.

HMRC Self-Assessment and IVA:

• Financial Year: The financial year for self-assessment runs from 6 April to 5 April of the following year.
• Payment Timing: Your self-assessment liability is based on the income and tax for the previous financial year, and payments are generally due in instalments on specific dates, such as 31 January and 31 July.

What Happens If You Enter an IVA During the Financial Year:

• If you enter into an IVA during the financial year, you are protected for your self-assessment liability for that financial year (from 6 April to 5 April).

For example, if your IVA is approved on 6 June 2024, you will be protected for self-assessment debts up to 5 April 2025.

• However, the IVA does not cover self-assessment liabilities for the following financial year. For the next tax year (starting 6 April 2025), you will need to handle this separately and make payments outside the IVA.

If Your HMRC Self-Assessment Debt is Not Included in Your IVA:

• If HMRC self-assessment is not included in your IVA, don’t worry! You can refer to the “What if the creditor is not listed in my IVA?” section in the FAQs for guidance on how to handle this situation.

Let us know if you need further clarification or assistance! We’re here to help ensure your HMRC self-assessment and IVA are managed properly.

It’s possible that not all your creditors voted at the meeting, and this is fairly common. There is no need to be concerned.

Why Some Creditors May Not Appear on the Chairman’s Report:

• Opportunity to Vote: Creditors who were informed of your Individual Voluntary Arrangement (IVA) proposal were given the opportunity to vote on whether to approve it. This vote took place at the meeting or any adjourned meetings.
• Creditor’s Choice Not to Vote: If a creditor chose not to lodge a vote, they are still bound by the terms of the IVA, even if they did not vote in favour or against the proposal.
• Not All Creditors Vote: It’s not unusual for some creditors to not participate in the vote. This can happen for various reasons, including oversight, non-response, or administrative issues.
• Creditor is not included: You can refer to the “What if the creditor is not listed in my IVA?” section in the FAQs for guidance on how to handle this situation.

How to Check Which Creditors Had the Opportunity to Vote:

• Please refer to the final page(s) of your Chairman’s Report. This section will confirm which creditors were provided with the opportunity to vote at the meeting or any adjourned meetings.

If you’re concerned about a specific creditor or need further clarification, feel free to get in touch with us. We’re here to support you and can provide assistance if needed.

If a creditor has taken money from your account after the approval of your Individual Voluntary Arrangement (IVA), we need to identify whether the payment was taken after your IVA was approved.

What to Do If the Payment Was Taken After IVA Approval:

If the payment was taken after your IVA approval, there are two steps you should take to address this issue:

Ensure Future Payments Are Stopped:

Direct Debit or Standing Order:
If the payment was taken via Direct Debit or Standing Order, you should immediately cancel the instruction. You can do this by logging into your online banking or by contacting your bank directly.

Card Payment:
If the payment was made via card, it’s best to contact your bank and report your card as lost or stolen. This will result in a new card being issued (with a different card number), so the creditor’s payment details will no longer be valid. However, don’t forget to update any ongoing payment instructions that you want to remain in place (including IVA payments).

Contact the Creditor to Request a Refund:

Contact the creditor directly and inform them that the payment was taken after your IVA was approved and that they are legally not entitled to take any payments under these circumstances.

We’ve created a template letter for you to use to request the refund. You can click [this link “Template – Refund”] to download it and send it to the creditor.

Check If the Debt Is Included in Your IVA:

• Review the “Debts that cannot be included” section in the FAQs to ensure that the debt is eligible to be included in your IVA. If the debt is not eligible, it might explain why the creditor is still attempting to collect payments.

What If the Payment Was Taken Before IVA Approval:

• If the payment was taken before your IVA was approved, the creditor does not have a legal obligation to return the money. However, you can still ask them to return the payment as a goodwill gesture.
• You can contact the creditor, explain your situation, and request that they return the payment since you were in the process of entering an IVA at the time.

What If the Creditor Refuses to Return the Funds?

• If the creditor does not return the funds or is uncooperative, please get in touch with us. We can assist you in resolving this issue and follow up on your behalf to ensure your funds are returned.