www.iva.co.uk

can i be dismissed from my employment if i enter into an iva

If you read your contract of employment or phone your HR department anonymously to find out if youre allowed or not. Most of the time you do not have to declare the fact to your employer. I do believe that some financial institutions dont allow it though.

It would be quite unlikely, but as Lily says the answer to this will be in your contract of employment or staff handbook.

i have checked my service agreement and it reads


shall commit any act of bankruptcy or take advantage of any statute for the time being in force offering relief for insolvent debtors

please can you advice me

My old contract said "should the employee become bankrupt or the subject of an interim order" was grounds for dismissal.

I believe interim orders are quite rare in IVAs anyway. Melanine will probably be able to confirm, mind you , you might not even have that. It all depends hey... SHould be fine thought

Can I just ask isn't Bankruptcy deemed worse than an IVA??? I know you are insolvent with both.

As far as I am concerned it should not affect your employment but obviously best to do an anonymous call to your HR Department

We have prepared IVAs for soldiers, policemen, financial advisers, chartered accountants, lawyers etc. Some have had restrictions in their contracts but these have been waived after discussions with their employers. The irony is, that in sensitive jobs, it is clearly much better to have the debt problem resolved than to have it hanging over you. This leaves a debtor much less susceptible to blackmail.

Without giving away any personal information, what is your job?

Hi Billg
I think that you need to speak with your HR dept, or your line manager, to clarify this important point.
Regards

im a sales director

If you are a director of a ltd company there is a possibility that the articles of association prohibit directors from entering insolvency proceedings. To amend the articles would require shareholder approval which is not normally an issue in small companies but could be a problem in larger ones.

If you are not actually a director then it would be down to your employers to agree to waive the insolvency clause. Most employers are happy to do this rather than lose a valued member of staff but as the others have said speak to HR or a union rep on a no names basis before you commit to anything. Given the number of people in financial problems at this time it may be that you are not the only one to have approached your employers.

i am a director of a small company which is part of a large group do you think i will have a problem as the group is making cuts and may see this as a way of getting me out and saving my salary

It is possible Bill. As Michael says, a quick company search to check this out in the Articles should set your mind at rest.

As Melanie says it is a possibility that your job could be in danger. But what are the alternatives? If the debts are severe they will not go away and soon you will find all avenues of credit withdrawn if they have not already been. This will lead to defaults, CCJs, attachment of earnings orders and potentially bankruptcy proceedings which your employer would find out about anyway.

If the group are trying to make cuts, surely the sales team would be last to go?

thank you