An IVA and Your Job, Question by Question
When work is unaffected, and the few cases worth checking.
Will an IVA affect my job?
For the vast majority of people, no. An IVA does not prevent you from working, and it is not deducted from your wages, so it does not show up in payroll. Most employees carry on exactly as before. The situations that need a closer look are certain professions, some employment contracts, and company directorships, which we cover below.
Could I lose my job over an IVA?
Only in specific cases. An IVA is not, in itself, grounds for dismissal in most jobs. However, some employment contracts contain a clause making insolvency a disciplinary or dismissible matter, particularly in roles handling money or in regulated sectors. The way to be sure is to read your contract, and any professional body rules, before you start. For most people there is nothing of the kind.
Which professions are affected?
Mainly finance, law and accountancy. Some roles in financial services, banking, law and accountancy treat insolvency as relevant to professional standards, and may require disclosure. Jobs needing security clearance or involving handling client money can also be affected. Even in these fields an IVA does not automatically bar you, but it may need to be declared, so checking the rules that apply to you is wise.
Can I stay a company director?
Usually, yes, unlike bankruptcy. An IVA does not disqualify you from being a company director, indeed, helping directors deal with personal debt was part of why IVAs were created. The catch is that your company's articles of association, or your service contract, may include an insolvency clause. If so, you may need the shareholders to amend it or to be reappointed. Our business guide covers this.
Will my employer be told?
Not by your IVA provider. Your provider will not contact your employer, and payments are not taken from your salary, so there is no automatic disclosure. An employer would generally only find out through a check you consented to or by searching the public register, which is uncommon for current employers. Our guide on whether your employer will know goes into this in detail.
What if I change jobs?
A new employer may run checks. Recruitment in financial sectors often involves credit or background checks that could reveal an IVA. If you are moving into such a role, being upfront is often the best approach. For most other jobs, standard recruitment will not surface an IVA, so changing jobs is rarely a problem because of the arrangement itself.
What if I'm self-employed?
You can keep trading. Being self-employed does not stop you having an IVA; in fact it is a common route, because it lets you carry on running your business while dealing with your debts, rather than risking it in bankruptcy. Your income is assessed a little differently, usually via a cash-flow projection. Our self-employed guide explains how it works.
Should I get advice?
Yes, especially if your role might be affected. A free, impartial adviser can tell you whether your particular job, profession or directorship could be impacted, and how to handle disclosure if needed. For most people the answer is reassuring: their work is unaffected and private. Checking first removes any doubt. It costs nothing and gives you peace of mind before you decide.
