If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.#
An IVA won’t affect most jobs. Your employer isn’t automatically notified when you enter an IVA, and for most roles, being in an IVA doesn’t matter.
But if you work in certain regulated professions (finance, law, insolvency, or the armed forces), an IVA might affect your employment. Some roles require you to disclose insolvency arrangements, and a few employers have policies against employing people in IVAs.
Will Your Employer Find Out About Your IVA?#
Not automatically. When you enter an IVA, your employer isn’t notified.
Your IVA is listed on the Individual Insolvency Register, which is publicly accessible. But employers don’t routinely check this register unless they have a specific reason to (like if you work in a regulated profession).
There are three situations where your employer might find out:
1. You tell them
Some employment contracts require you to notify your employer if you enter into an insolvency arrangement (like an IVA or bankruptcy). This is common in finance, legal, and public sector roles.
Check your employment contract or staff handbook. If there’s a disclosure clause, you’re legally obliged to tell your employer.
2. Income Payments Order (IPO)
In rare cases, if you’re struggling to make your IVA payments, your Insolvency Practitioner (IP) might apply for an Income Payments Order (IPO). This is a court order that instructs your employer to deduct IVA payments directly from your wages before you receive them.
IPOs are uncommon in IVAs (they’re more common in bankruptcy), but if one is issued, your employer will find out about your IVA.
3. Credit checks for new jobs
If you apply for a new job in a regulated industry (like financial services), the employer might run a credit check as part of their hiring process. An IVA will show up on your credit file, which means the employer will see it.
For most jobs, employers don’t run credit checks. But for roles involving financial responsibility, they often do.
Jobs That Might Be Affected by an IVA#
Most jobs aren’t affected at all. But certain professions have restrictions or disclosure requirements.
Financial Services#
If you work in banking, insurance, investment management, or financial advice, an IVA might affect your employment.
Many firms in financial services require employees to have clean credit histories. An IVA signals financial difficulty, which can be seen as a risk — especially if you handle client money or give financial advice.
Some firms have policies that prevent them from employing people in IVAs or with poor credit. Others might allow it but move you to a different role that doesn’t involve handling money.
If you’re applying for a job in financial services, you’ll likely need to disclose your IVA. Most firms run credit checks as part of their hiring process.
The Financial Conduct Authority (FCA) requires certain roles (like financial advisers) to meet “fit and proper” criteria. An IVA doesn’t automatically disqualify you, but it’s a factor the FCA considers.
Accountancy and Insolvency Practitioners#
If you’re a qualified accountant or insolvency practitioner, an IVA will affect your professional standing.
Most accountancy bodies (like ICAEW, ACCA, CIMA) require members to notify them if they enter an IVA. Depending on the circumstances, you might face disciplinary action or restrictions on your practising certificate.
For insolvency practitioners, an IVA is particularly problematic. The Insolvency Practitioners Association and other regulatory bodies have strict requirements about members’ financial standing. An IVA might result in suspension or loss of your licence.
Legal Professions (Solicitors, Barristers)#
If you’re a solicitor or barrister, an IVA will affect your career.
The Solicitors Regulation Authority (SRA) and Bar Standards Board (BSB) require you to notify them if you enter an IVA. They’ll investigate your circumstances and decide whether you can continue practising.
In some cases, you might lose your practising certificate or face restrictions (like not being allowed to handle client money).
This is because solicitors and barristers are expected to maintain high standards of financial probity. An IVA suggests financial mismanagement, which can undermine client trust.
Police and Armed Forces#
The police and armed forces have strict rules about financial conduct. An IVA might affect your employment or security clearance.
Police: Many police forces require officers to notify them of any insolvency arrangements. An IVA won’t automatically lead to dismissal, but it might result in restrictions (like not being allowed to handle cash or evidence).
Armed Forces: Similar rules apply. Military personnel are expected to manage their finances responsibly. An IVA might affect your security clearance, especially if you’re in a sensitive role.
Directors of Limited Companies#
If you’re a company director, an IVA won’t automatically disqualify you from being a director (unlike bankruptcy, which does).
But an IVA might make it harder to run your company:
- Banks might refuse to lend to your company
- Suppliers might be reluctant to offer credit
- Clients might lose confidence if they find out
You’re legally allowed to remain a director while in an IVA. But practically, it can make business operations more difficult.
Jobs Requiring Security Clearance#
If your job requires security clearance (like in defence, intelligence, or certain civil service roles), an IVA might affect your clearance.
Security clearance checks include financial vetting. The concern is that financial difficulty makes you vulnerable to bribery or blackmail.
An IVA doesn’t automatically disqualify you from security clearance, but it’s a red flag. You’ll need to demonstrate that your finances are under control and that the IVA is a responsible step toward resolving your debt.
Jobs That Aren’t Affected by an IVA#
For most jobs, an IVA makes no difference at all. Employers in these sectors typically don’t run credit checks or care about your financial situation:
- Retail
- Hospitality (restaurants, hotels, bars)
- Healthcare (nurses, care workers, GPs)
- Education (teachers, teaching assistants)
- Manufacturing and logistics
- Construction and trades
- IT and software development
- Creative industries (design, marketing, media)
If your job doesn’t involve handling large sums of money, giving financial advice, or requiring security clearance, an IVA won’t affect your employment.
Do You Have to Tell Your Employer?#
Only if:
- Your employment contract requires you to disclose insolvency arrangements
- You work in a regulated profession with disclosure obligations
- Your IP applies for an Income Payments Order
Check your employment contract. If there’s a clause about disclosing financial difficulties or insolvency, you’re legally obliged to tell your employer.
If there’s no such clause and you don’t work in a regulated profession, you don’t have to tell your employer.
Can Your Employer Fire You Because of an IVA?#
Generally no — unless your contract specifically allows it or the IVA affects your ability to do your job.
An IVA alone isn’t grounds for dismissal in most cases. Employment law protects employees from unfair dismissal, and being in debt isn’t usually a fair reason to fire someone.
However, there are exceptions:
- Breach of contract: If your contract required you to disclose the IVA and you didn’t, your employer might have grounds for disciplinary action.
- Role-specific requirements: If your job requires a clean credit history (like in financial services) and an IVA makes you unable to meet that requirement, your employer might move you to a different role or, in extreme cases, dismiss you.
- Trust and confidence: If your role involves handling company money and your employer loses trust in you because of financial difficulties, they might dismiss you (though this is rare and would likely lead to an employment tribunal dispute).
If you’re worried about losing your job because of an IVA, seek advice from a debt adviser or an employment solicitor before you proceed.
Applying for New Jobs with an IVA#
If you’re applying for a job while in an IVA, here’s what you need to know:
Most employers won’t know: Unless the job requires a credit check, employers won’t find out about your IVA.
Be prepared to explain: If the job does require a credit check (common in financial services, law, or senior management roles), be ready to explain your IVA. Frame it positively: you’re taking responsible steps to manage your debt.
Disclosure requirements: Some job applications ask: “Have you ever been subject to an insolvency arrangement?” If they ask, you must answer honestly. Lying on a job application can lead to dismissal if discovered later.
Reference checks: If your current employer knows about your IVA (because you disclosed it), they might mention it in a reference. But most employers stick to factual information (job title, dates of employment, performance) and avoid discussing personal financial matters.
Will an IVA Affect Your Wages or Salary?#
Your IVA payments are based on your disposable income (what’s left after essential living expenses). This is worked out during the IVA application process.
Your wages aren’t directly affected. You continue to be paid as normal, and you make your IVA payment separately each month.
The only exception is if an Income Payments Order is issued (rare in IVAs). In that case, your employer would deduct the IVA payment from your wages before you receive them.
What Happens If Your Income Changes During the IVA?#
If your income increases or decreases significantly during your IVA, you must notify your IP.
Income increase (pay rise, promotion, bonus): Your IP will review your disposable income. If you can afford to pay more, your monthly IVA payment might increase.
Income decrease (redundancy, reduced hours): Your IP will reduce your monthly payment to reflect your new circumstances. In some cases, you might get a payment break while you find new work.
Your IP’s job is to ensure your IVA payments remain affordable based on your current income.
Can You Change Jobs While in an IVA?#
Yes. You’re free to change jobs during your IVA.
But if your new job pays significantly more or less than your current job, you must tell your IP. They’ll adjust your monthly payment accordingly.
If your new job requires disclosure of insolvency arrangements, make sure you comply with that requirement.
IVA and Self-Employment#
If you’re self-employed, an IVA works slightly differently.
Your IP will assess your average monthly income based on recent tax returns and bank statements. Your IVA payment is based on this average.
Self-employment income can vary month to month, so your IP might allow some flexibility in your payments. But you’ll still need to make regular contributions.
If your self-employed income includes HMRC debts (like unpaid VAT or income tax), these can be included in your IVA.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.
Frequently Asked Questions#
Will my employer be told about my IVA?#
Not automatically. Your employer is only notified if you tell them, if your contract requires disclosure, or if an Income Payments Order is issued (rare).
Can I lose my job because of an IVA?#
Generally no, unless your contract requires financial probity and the IVA breaches that requirement, or if you work in a regulated profession where an IVA affects your ability to do your job.
Do I have to tell my employer if I enter an IVA?#
Only if your employment contract requires you to disclose insolvency arrangements, or if you work in a regulated profession (finance, law, police, armed forces).
Can I apply for jobs while in an IVA?#
Yes. Most employers won’t know about your IVA unless the job requires a credit check. Be honest if asked directly on job applications.
What if I get made redundant during my IVA?#
Tell your IP immediately. They’ll reduce your IVA payments to reflect your loss of income, and you might get a payment break while you find new work.
Can I start a new business while in an IVA?#
Yes, but check with your IP first. Starting a business might affect your income, and you’ll need IP approval before taking on any new credit (like business loans).
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.