Whilst often the right choice for dealing with unaffordable debt, you may not want people to know about your IVA. So who will find out? Rather speak to someone? Call 0800 077 6180.
Included in this article:
- Will my friends and family find out?
- Are my bank or employer informed?
- IVA recorded on the Insolvency Register
Will my friends and family find out?
Often this is one of the biggest concerns for debtors. Feeling embarrassed that you are facing financial difficulties is common. Sometimes the last thing we want is feeling judged by our nearest and dearest.
The reality is there is nothing in the IVA process that would trigger any of your family members being contacted or told about your IVA. The only exception might be if you have debt with friends or family and your decide to include them in the agreement.
As a creditor they would be treated like any other debt. They would receive a copy of your application and would see the details of your other debts. During your IVA they would receive some of their debt back through your payments. As such they would be very aware of your situation.
If you own a property in joint names with your partner or spouse you can’t do an IVA without them finding out. The property would be involved and they would need to be made aware of this.
Are my bank or employer informed?
Your bank will only find out if you owe them money. This might be a loan or credit card, but also includes your overdraft if you have one. The bank would then be a creditor and included in your IVA.
Your employer will not be told. They would only normally find out if you decide to tell them. The only other way they could discover you are in an IVA is if they carry out a regular credit check against you. This will not happen unless they are allowed to do so as part of your employment contract.
Whilst your employer finding out can be a real worry, there are really very few jobs that are effected by an IVA. You can find out if your job might be at risk by checking your employment contract.
If you owe money to your bank, you may need to open a new account before starting an IVA.
IVA recorded on the Insolvency Register
Your name and address is recorded on the Insolvency Register once you start an IVA. This register is accessible by the public online. As such it is possible for someone to discover you are in the Arrangement if they really want to.
However for someone to find out about your IVA they would have to actively search the register. This is fairly unlikely. Most people are not even aware that it exists.
Your details remain on the Insolvency Register for the period of your IVA. Once you have received your completion certificate they are then removed (normally within 3 months).
The Insolvency Register is sometimes called the IVA Register. However it lists everyone using a formal insolvency solution including Debt Relief Orders and Bankruptcies as well as IVAs.