IVAs and Employment
One of the most common questions our customers ask is whether their employer will find out about their IVA.
We’ve put together this guide to answer all the most popular queries about how your IVA will affect your employment…
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How does an IVA affect your current job?
Nowadays, in most occupations, entering an IVA will not affect your job. However, there are still a few occupations where your job could be affected.
These are mainly jobs in accountancy, law or financial services, such as banking. However, not all jobs in these industries will mean that you cannot enter an IVA – it is still possible for many people in these sectors to propose an IVA.
If you are unsure whether an IVA will affect your job, it is best to check with your employer, and look at your contract of employment and the terms of any professional memberships you may have.
PayPlan will not contact your current employer to inform them about your IVA. The only way your employer will find out is if they do any financial checks, which have to be approved by you – or by searching the public Insolvency Register. However, it is not common for current employers to check the Insolvency Register, so you don’t need to worry about this too much.
What if I am self-employed?
If you’re self-employed, you can usually carry on trading whilst you’re in an IVA. Self-employed IVAs allow you to maintain control over your business finances while repaying your debt – a factor that has made them a preferred option over bankruptcy.
For more information about self-employed IVAs visit the PayPlan Bespoke website.
How will an IVA affect my future job prospects?
If you change jobs during your IVA, it is worth considering whether any new employer will do any credit checks – or other checks – which may show that you’re in an IVA. Most financial professions do usually require credit checks, so if you are considering moving job, it might be worth being upfront about your IVA.
However, talk to them before you tell your current employer you are leaving, to make sure it won’t be a problem.
What happens if I lose my job after setting up an IVA?
If your financial circumstances change – for example if you lose your job – depending on the terms of your IVA, you may be able to request a payment break of up to 9 months, or ask your creditors to allow you to suspend your monthly IVA payments until your find another job.
IVAs can be quite flexible but it is very important to talk to your Supervisor as you soon as you can about any changes in circumstances, so they can go through your options with you.
If you have any further questions about the effect of an IVA on your employment, get in touch with our debt advisers – call FREE on 0800 280 2816 or complete and submit a call back request.
Our advisers will be able to assess whether an IVA is the right debt solution for you, and discuss any other solutions which might suit you better.
*In the case of a one-off lump sum settlement