My employers are bound to find out IVA Myth

Summary: My employers are bound to find out - This article aims to assure those that are considering an IVA (Individual Voluntary Arrangement) that there is no need for employers to discover about the IVA.


IVA's were set up in the 1980's to help those who were financially insolvent, to avoid bankruptcy. One of the reasons that some people could not face bankruptcy was due to the nature of their jobs. Bankruptcy can be, and certainly was, a public issue with publicity in the local press. Employers were and are very likely to find out, and for some this could result in the loss of their job. . Hence there was the need for a more discreet arrangement.

Who knows about an IVA?

An Insolvency Practitioner acts as the go-between for a debtor and their creditors in an IVA. The IVA has to be noted in an Insolvency register that is available to the general public. The notice of the IVA also appears on the individual's credit file. However employers are not informed of the IVA, and unlike bankruptcy, landlords are not informed either. Of course if someone knew where to look in the insolvency register then they could find out about the IVA (though it's not something that anyone might casually stumble across). Anyone undertaking a credit search will also discover the existence of the IVA. But with those exceptions, an IVA remains a discreet solution to insolvency.

Terms and conditions of employment

In some cases, employees have written into their contracts that they cannot keep their job if they enter bankruptcy. In even fewer cases, such a clause may appear in the terms & conditions regarding an IVA. This is likely to be for people working in the financial sector, though it should be stressed that the vast majority of those in this sector do not face such a problem.

Credit checks

If the nature of our employment means that we are subject to regular credit checks then it is likely to be necessary to inform our employers before entering an IVA to see if this would create a problem.

In the overwhelming majority of cases, employers do not need to be made aware of the IVA, and it remains an effective way of dealing with debt.

The above is provided as information only. does not provide debt advice. You must always seek professional advice before taking any action to resolve your debts.