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Living on a debt solution

Can an IVA affect my job?

Posted 27 September 2015 by Christine Walsh

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A look into how an IVA could affect your working life and whether or not it would be the right solution for you.

One of the questions we’re often asked here at the Debt Advisory Centre is “will I lose my job if go on an IVA?” So we’ve put together this piece to put your mind at rest.

When you start to chat to one of our debt advisor about your situation, they’ll ask you for details about your job and who you work for, as well as discussing your future career aspirations. We do this so that we can tell you whether or not an IVA would have a negative effect on your working life. If it turns out that it would then we would propose an alternative debt solution for you, one that would allow you to continue with your current role or future career plans.

Let’s have a look at why an IVA might not be the right solution for you.

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If your employer won’t or can’t employ people who are insolvent

Some employers have rules against employing people in certain roles who are, or have been, insolvent – and IVAs are a form of insolvency.  The type of roles affected tend to be those where you are responsible for money, like an accountant, or if you’re in a position where you are giving advice to people about their money, like a mortgage advisor. Other examples of jobs that could be affected by going into an IVA are official positions or positions of authority, like being part of the police force or prison service. So, if you’re currently in construction, an IVA is unlikely to affect your job at all, unless you’re the accountant for the firm! But, if you want to apply to join the police in the next few years, then an IVA might stop you from achieving this and, in this case,  we would not recommended it.

However, most jobs don’t have strict financial requirements like this, so would not be affected by starting an IVA. If you are in any doubt always check the terms of your contract or with the HR department of your company before entering into any sort of agreement.

Will my employer find out about an IVA?

In most cases your employer would only find out about your IVA if you, or someone else you worked with, told them, or if they searched the Insolvency Register.

Some employers, such as those listed above, do carry out regular checks of their staff, both when they take a job and every so often afterwards. In these cases you’d want to disclose the IVA to them: in fact, the chances are that this would be part of your contract, and it’s always better to be upfront about it anyway.  If you don’t declare your IVA when you’re supposed to, it could result in disciplinary action, depending on your employer’s policy. So, read your contract thoroughly and disclose all the information you’re asked for.

So to summarise, the vast majority of jobs are not affected by starting an IVA, but some professions are off limits and some employers would want you to tell them. If an IVA isn’t the right solution for you, one of our advisors will recommend another debt solution that could be more appropriate.  Use the options to the left if you fancy having a chat with us about this. If you’d like to find out more about IVAs read our detailed guide. Here's a look at the different debt solutions that are available.

by Christine Walsh

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To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money.