Over the past couple of years a number of companies have sprung up including a prevalent one called Jefferson Hobbs who write to people who have recently started an Individual Voluntary Arrangement (IVA) and suggest that they may not have been given the right advice and that there may be better options.

Such companies are able to find out your details because once you have started the Arrangement your name and address is added to the Insolvency Register. This document is a publicly accessible via the internet.

If you are contacted by one of these companies we explain whether you have anything to be worried about and whether you should question whether an IVA is the right solution for you.

Do not stop your IVA payments

If after you have already started your IVA you are contacted by Jefferson Hobbs or anyone else who suggests you might have made the wrong decision, then their objective may be to suggest that you stop making your payments so that they can help you with an alternative solution (often bankruptcy) for which they will charge you a fee.

It is very important to understand that if you receive one of these letters you must NOT stop paying your IVA without taking further professional advice. This could have extremely serious consequences for you particularly if you are a home owner.

If you own a property and you stop making the payments into your Arrangement the insolvency practitioner may be forced to fail it. This could lead to you compulsorily being made bankrupt and your property being force sold.

Double check the IVA advice you have received

Before starting your IVA you should have also considered the alternative debt management solutions available to you including a Debt Management Plan (DMP) and Bankruptcy.

If you are currently dealing with a reputable firm you should have been properly advised about all of these options and chosen an IVA because it is the right solution for you based on your personal circumstances.

If you are concerned that this was not the case or that you may not have made the right choice of debt solution then you should make your own independent enquiries.

Of course you can speak to your Insolvency Practitioner (IP) and ask them to clarify the benefits of your Arrangement to you. However, if you feel uncomfortable doing this you should also speak to a reputable independent debt advisor such as Beat My Debt who will be happy to offer you advice for free.

Use an On line IVA forum

Alternatively use the Beat My Debt on-line debt forum. This is a great way of getting independent views from both personal debt experts and other people who are going through the IVA process.

Generally speaking, you should have chosen to carry out the Arrangement because you believe it is the best solution for you given your personal financial circumstances.

During this process you should have considered the alternative options such as a debt management plan and bankruptcy and be comfortable that you have made the right decision.

If this is the case, then there is absolutely no reason to question the decision you have made and you can put any letters you receive that question this in the recycling bin.

However, if you are concerned or worried, it is always worth getting a second opinion. But remember, if you are contacted by a company out of the blue it is likely that they have a financial motive. It is therefore always best to speak to an independent debt expert before taken the advice from one of these companies.