My job and individual voluntary arrangement (IVA)
You may be concerned about how an individual voluntary arrangement (IVA) will affect your job if you are considering one. We manage IVAs for many of our clients, and the good news is that having an IVA will not affect most jobs, but there are important exceptions.
Before proceeding with an IVA, you should be certain that you understand whether your job may be jeopardized. Before applying for any debt solution, you should seek free and impartial debt advice to determine which options are best suited to your specific situation.
Will an IVA have an impact on my job?
When you have an IVA, you may be unable to keep certain jobs, often because you are in charge of other people’s money. Most jobs will not be impacted by an IVA. An IVA, on the other hand, could have an impact on roles in the following industries:
- Services relating to finance
- conveyancing of real estate
If you work in one of these fields, having an IVA may mean that you can no longer practice or that you can only do so under certain conditions.
Not all jobs in these industries will bar you from entering into an IVA. Before applying for an Individual voluntary agreement, you should determine whether your role poses any risks with the understanding IVA impact on job.
You can find out if your job is affected by an IVA by doing the following:
- Examining your employment contract’s terms and conditions
- Speaking confidentially with your human resources department
- Speaking with your trade union or professional organization
- Learn more about how an IVA may affect you.
What should I do if an IVA could jeopardize my job?
If you believe your current job may be jeopardized by having an IVA, or if you intend to apply for a job that may be jeopardized, this may not be the best option for you.
All IVAs are managed by an Individual voluntary agreement supervisor, who can advise you on this.
There are a variety of other debt solutions to consider that may assist you in getting your financial situation back on track.
As an example:
- A debt management plan (DMP) requires you to make affordable monthly payments that are divided among your creditors. This option may be recommended if you are able to pay off your debts in a reasonable amount of time, usually less than ten years.
- If you have equity in your home, you may be able to remortgage it to pay off your debts.
Also, read The importance of personal finance planning.
Will my employer become aware of my individual voluntary arrangement?
The only ways an employer can learn about your IVA are as follows:
- Making financial checks that must be approved in advance by you, or
- It is unusual to search the public Insolvency Register.
If your employer requests a credit check on you, your employment contract should outline the procedures for doing so.
It is uncommon for an employer to check the Insolvency Register, but it does occur on occasion. Your information will be displayed on the register for the duration of your Individual voluntary agreement as well as for three months after it expires. You should keep this in mind before obtaining an IVA.
Is having an IVA a hindrance to getting a job?
This is determined by the job you’re applying for. Most employers do not conduct credit checks on their candidates that would reveal an Individual voluntary agreement, but some may. Credit checks are more likely if you’re applying for a job where you’ll have access to other people’s money.
What happens if I lose my job while undergoing an IVA?
If you lose your job during your individual voluntary arrangement, you may be concerned that the change in your financial situation will have an impact on your Individual voluntary agreement. This occurs, you should notify your IVA supervisor as soon as possible, and they will go over your options with you.
If you do lose your job, your IVA will not automatically fail.
IVAs are typically quite adaptable. If you have lost your job and are struggling to keep up with payments, depending on the terms of your agreement, you may be able to:
- Request an up to nine-month payment break.
- Request that your creditors allow you to postpone your monthly Individual voluntary agreement payments until your financial situation improves.