Your Employer and Your IVA, Question by Question
How private an IVA is, and the few jobs where it matters.
Will my employer know about my IVA?
Usually not. An IVA is a private agreement between you and your creditors, arranged through an insolvency practitioner. Your IVA provider will not contact your employer to tell them, and there is no automatic notification. For most people in most jobs, an employer simply has no reason to find out, and the IVA has no effect on their employment at all.
Are payments taken from my wages?
No, not in an IVA. Unlike some court-based arrangements, an IVA is not collected through deductions from your salary, so your employer is not involved in your payments. You pay your monthly contribution yourself, usually by standing order from your bank account. This is one reason employers generally remain unaware, there is nothing in the payroll process that flags an IVA.
So how could an employer find out?
Mainly through a check you agree to, or the public register. An employer would normally only learn of an IVA if they carried out a financial or credit check that you consented to, or if they searched the Individual Insolvency Register, which is public. In practice, current employers rarely check the register, so for most people the risk of them finding out is low.
What is the Individual Insolvency Register?
A public record of insolvencies, including IVAs. While you are in an IVA your name appears on this register, and it is removed three months after the arrangement completes. Anyone can search it, so it is technically possible for an employer to find your entry. However, employers do not routinely check it, so although it is public, it is not a common way for them to find out.
Which jobs could be affected?
Mainly certain roles in finance, law and accountancy. For most occupations an IVA makes no difference to your job. The main exceptions are some positions in financial services, banking, law and accountancy, where insolvency can be relevant to professional rules. Even then, an IVA does not automatically bar you, but it may need to be disclosed. Some roles handling money or requiring clearance can also be affected.
How do I know if my job is affected?
Check your contract and any professional rules. The best way to be sure is to read your employment contract and the rules of any professional body you belong to, which set out whether insolvency must be declared or could affect your position. If you are unsure, a free, impartial adviser can help you interpret them. It is worth doing this quietly before you start an IVA, so there are no surprises.
What if I change jobs during my IVA?
A new employer might run checks. When you apply for a new job, the employer may carry out credit or background checks, and roles in financial sectors commonly do. These could reveal your IVA. If you are moving into such a field, it is often best to be upfront about your situation. For most other jobs, routine recruitment will not surface an IVA.
Should I get advice?
Yes, particularly if your profession might be affected. A free, impartial adviser can tell you whether an IVA is likely to affect your specific role and how to handle disclosure if needed. For the great majority of employees, an IVA is a private matter their employer never learns of. Checking first simply gives you certainty and peace of mind. It costs nothing to ask.
