IVAs and work

An IVA won’t usually affect your job. But it might be a problem if your role involves handling or giving advice about money. For example, if you work in:

• accountancy
• banking or other financial services
• law
• property conveyancing

Even if you work in these sectors, you won’t necessarily lose your job. But there may be certain conditions attached to keeping your position.

Check your contract of employment to see if your job will be affected by an IVA. 

You can also speak confidentially to your HR department, trade union or representative body.

Your insolvency practitioner won’t tell your employer about your IVA. 

But they could find out if they:

• carry out a credit check
• check the insolvency register

Employers have to ask before carrying out a credit check and they rarely check the insolvency register.

Yes, you can get an IVA if you’re self-employed.

An IVA may be a good option if you’re self-employed, as you’ll be able to keep your assets and continue to trade.

However, the usual considerations apply:

• Your name will be added to the public insolvency register.
• The IVA will stay on your credit file for six years, making it harder to get credit.
• You could be made bankrupt if you don’t stick to your agreed IVA payments.

If you plan to change jobs during your IVA, check having an IVA won’t be a problem before you hand your notice in. 

If you lose your job, speak to your insolvency practitioner as soon as possible. 

You may be able to get a payment break until you find a new job. 

Bear in mind that any payment breaks will increase the length of your IVA. So if you have a five-year IVA and take a three-month payment break, your IVA will take five years and three months to complete.

If you’re earning less after changing jobs, you can ask for a ‘variation’. A variation is a legal adjustment to the terms of your IVA that could reduce your payments to a level you can afford.

Any variation would have to be approved by your creditors in the same way as the original agreement.

If you think you need a variation, contact your IVA provider as soon as possible.

If entering an IVA would have a negative effect on your job, a different debt solution like a debt management plan might be more appropriate for your situation.

Use our online solution finder or give us a call for advice.