Who will find out about my IVA? IVA Issue
Summary: Who will find out about my IVA? - This article seeks to explain the circle of people who will be informed about your IVA.
It is an understandable concern for those in an IVA, or those considering an IVA as to how private or discreet the IVA will be. For many, the thought of family, friends, employers or others finding out is too much to bear.
Who does need to know?
The IVA is essentially a private matter between debtor and creditors. It has to be proposed and managed through an Insolvency Practitioner and credit agencies have to be informed. This is usually the limit to the circle of those informed of the IVA. It is worth bearing in mind that creditors might include utility providers or councils if there are council tax arrears.
Once an IVA has been accepted, it must be listed on the Insolvency Service website, which is generally only of interest to those involved in the insolvency business or in credit industries. However, the website may be legally accessed by any member of the public and there is no way to stop this happening. There is though no legislation requiring the publication of your name in any newspaper or periodical regarding your IVA.
If you are self employed then your trade creditors that you owe will have to be notified about your IVA as will HM Revenue & Customs (HMRC). Since payments of tax and national insurance contributions are usually made in arrears, then HMRC are automatically a creditor in your IVA. If you are not self-employed but have been over paid tax credits, again HMRC will have to be notified about your IVA since you are obliged to repay any such overpayment.
It would be normal to share such information with a spouse or partner. If a property was jointly owned it would be necessary for them to be informed since the IVA may have an effect on the future ownership of any joint assets. In some exceptional circumstances it may be that your spouse/partner need not be notified of your IVA but this would unusual. Further advice on this would be needed from your I.P.
Who won't be informed?
Your employer will not be notified and nor will your landlord. Your mortgage company will not be informed, but as above, in the case of a property held in joint names, the other party will need to be informed because of the equity release issue.