An IVA can be used to stop action from a bailiff. However whether it is the right solution for you will depend on a number of factors.
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When is a Bailiff Used?
A bailiff is most commonly used to collect outstanding council tax, court fines, utility arrears and HMRC debt. A commercial bank or lender is unlikely to use this collection option.
These types of creditors will normally only resort to using a bailiff after all other attempts to collect an outstanding debt have been exhausted. If they do an application has to be made at the Court for a warrant of execution.
Once the warrant is issued a bailiff can then visit your home and has the power to arrest goods. In other words take things that you own and sell them to pay the debt you owe.
Do not ignore a payment demand from a bailiff. Ultimately they do have the power to seize your goods up to the value of the debt that you owe.
Is an IVA the Right Solution for you?
All court actions including the use of a bailiff must be stopped after an IVA has been put in place. However whether it is the right solution to deal with your problem depends on a number of things.
Most debts can be included in an IVA including utility and council tax arrears. However court fines cannot. If the bailiff is collecting an outstanding court fine you owe an IVA cannot help.
You also need to consider how much debt you have in total. An IVA is normally only suitable if you owe at least £8000. You will also be obliged to maintain a monthly payment of at least £100 for 5 years.
If the amount a bailiff is chasing for is only a few hundred pounds an IVA is unlikely to be right for you unless you have other debts.
What can you do while your IVA is being implemented?
It is important to understand that an IVA cannot be implemented overnight. The solution will take 4-6 weeks to set up.
You will therefore need to speak to the bailiff. Explain that you are in the process of proposing an IVA and ask them to put your account on hold for a month to allow time for this to happen.
If they refuse to stop their action it might be possible to apply for temporary protection from the Court in the form of an Interim Order. However this costs £160 which you would have to pay.
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I have just had my Iva approved and a bailiff has text me to say he will be visiting this week. He said an Iva can’t stop him coming because magistrates warrants can’t be included in the Iva, can anyone help?
Hi Sammyt
If the debt for which a bailiff has been instructed is civil (ie anything other than a court fines, CSA Arrears, Benefits / Tax Credit Overpayments due to fraudulent claims) then once your IVA was approved the debt is included and the bailiff action must stop. This is the case even if the debt was for council tax arrears and a liability order was issued. You should speak you your IVA company about this and get them to contact the bailiff company on your behalf.
Me and my husband have council tax debt. We have tried to set up an agreement with the company but they have refused and are now sending a bailiff. We have nothing of value in the house, but I’m worried about my car. I’ve parked it on another street.
Will the baliffs know my registration number? I bought it for £865 so it’s not worth much. Can they still take it as without it I cannot commute to work as it is crossing the border into another county so would take me forever to get there and cost a fortune. We have now left this issue in a company that issues iva’s but worried in the meantime I suffer with depression and anxiety so is causing me huge upset
Hi Annie
It is possible that the bailiff will do a DVLA check and so will be able to establish you have a car and the reg. As such if a bailiff attends your property and finds your car they can clamp it regardless of what you need the vehicle for. As such you have done the right thing by parking it in a different street. If they do turn up I do not think they will spend hours hunting up and down the nearby streets in the hope of finding it…..
In the mean time my best advice is that you should work with your IVA company to get your IVA in place as quickly as possible. Make sure this debt is included in the IVA and the original council are listed as the creditors. That way they are sure to be included in the IVA proposal process. Once the IVA is accepted the council will be legally bound and they will have to call off the bailiff.
Hello
My wife and I are currently involved in the IVA process. We have spoken to the the relevant companies that are dealing with it and our payment will be £140 pm for 60 months this includes costs and fee’s etc.
Our virtual meeting will be held on the 14th February so my question is- are court appointed bailiffs still able to enter our home and remove goods whilst this process is being finalised?
Hi Ryan
In theory bailiffs can continue their action against you up until the date your IVA is accepted at the meeting of creditors. The Arrangement is not legally binding on them and does not give you protection from them until then.
That said if you are contacted by a bailiff or debt collector you should tell them that you are in the process of proposing and IVA and that the creditors meeting will be held shortly. Ask them to put your account on hold until then. Most will be willing to help.
Bailiffs can be aggressive and say they will still visit your property. If this happens you must simply not let them in. Most bailiffs are actually not allowed to force their way into your property.