Can an IVA Affect My Job? 

 February 2, 2022

By  admin

When considering trying to obtain an IVA, you may be wondering, can an IVA affect my job? You may be hesitant to move forward if you believe it will negatively impact your career or job. Be glad to know that in most cases, an IVA would not affect your job, and shouldn’t be a problem if you receive permission from your employer. However, there are certain roles where it can affect your job or career, such as insolvency practitioner, accountant or banker, and police officer. Continue reading to get further advice on the matter and to help you decide whether an IVA is a wise choice for you.

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Will an IVA Affect My Job?

You should know that it’s your choice whether to disclose information about your IVA to your employer. The majority of employers won’t carry out credit checks. If they chose to, then they would need your permission to do so. Generally speaking, an IVA would not affect your job in most cases.

There are some roles and positions where it might, however. If that’s the situation then you may need to first receive permission from your employer to move forward. It makes sense that your employer would want you to make wise choices about your finances and avoid bankruptcy.  

Can Having an IVA Stop You from Being Selected for a Job?

Overall, your typical job doesn’t have strict financial vetting policies that would view having an IVA as undesirable. However, keep in mind that some contracts and jobs do. These positions are as follows:

  • Accountant
  • Solicitor
  • Police
  • Fire Service
  • Prison Service

These types of jobs have strict financial vetting procedures, but your average job does not and won’t complete credit checks. If you’re offered a promotion at your typical sort of job, it would be rare for your employer to begin running financial checks on you to see if you’re a good fit and suitable for the role.

Be aware that if you’re going after an external job or promotion that some places will run credit checks and some won’t. It not only depends on the industry you’re in but also the company. In any case, you’d have plenty of notice because the company must request your express consent to move forward with a credit check.

If they ask or inquire, it’s always best to be upfront and honest with your new employer. It may be a good idea to contact us and see which debts can be included in your IVA and check whether these would affect your employment.

Do You Have to Tell Your Employer About Your IVA?

There aren’t any laws or legislation that says you have to tell your employer about your IVA. However, make sure that this information or type of requirement isn’t stated in your employment contract to be sure. Some professions and industries have very strict rules in place and would require you to disclose your IVA.

It may be a requirement of the job that you would not be declared insolvent, so you’d have to be open and honest if this is what you want to do with your career. Check with your advisor in advance to know if there are IVA employment restrictions you’ll have on you if and when you enter into a voluntary arrangement.

Can You Lose Your Job or Face a Disciplinary?

It’s highly unlikely that if you tell your employers you’re undertaking an IVA that you would lose your job or face disciplinary action. On the other hand, if you hide it from them and it states in your employment contract that you must tell them about an IVA, then it’s possible you could face consequences or may lose your job.

You’ll also likely be put in a negative light for choosing to not notify them immediately. If you’re worried about telling your employer or have questions on the matter, then you might want to check in with your Professional Standards or Welfare team. You can speak to them in confidence and get some ideas about how to best go about sharing this information with your employer.

Could Co-workers Discover Your IVA?

No one will know about you having an IVA, not even your work colleagues. There are no public announcements that you need to worry about them hearing about or seeing. Be mindful that they can, however, search for your name on the Insolvency Register and find out this way.

What About Getting an IVA When I’m Unemployed?

It may be that you’re currently unemployed or between jobs. The good news is that, yes, you can get an IVA if you’re unemployed. However, you must be willing and able to pay a minimum of £80 per month into your arrangement and follow the guidelines and requirements.

The Advantages of an IVA & Qualifying for One

Whether or not you qualify for an IVA will depend on your debt level, type of debts you have, and your affordability. There are several advantages to having an IVA:

  •  An IVA is completely tailored around your finances and will create a plan that involves repayments that you can genuinely afford.
  • Once the IVA is agreed upon, your creditors are no longer allowed to take any further legal or recovery action against you.

An IVA normally won’t affect your job or employment status. With that being said, it does depend on your specific job role, employer, and industry. It’s best to know what you’re getting into and whether this information will need to be disclosed before you move forward.

IVAs must be set up and supervised by a Licenced Insolvency Practitioner, and NDH Financial is a fully Licensed Insolvency Practice with our own in-house Insolvency Practitioner

Have questions about securing an IVA? Contact NDH Financial today for a free consultation and to have all of your questions answered. We will identify how much you owe, determine whether you qualify for the scheme, and will calculate how much debt you could write off. 

We're Here to Help YOU

Speak with Our Team of Debt Consultants.

Do you have questions or would you like more advice?

You can book an appointment with our team of debt consultants in minutes. 

Just click the button to book your appointment today.

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