Will bankruptcy or an IVA affect my job?
Some jobs might be affected by an IVA or bankruptcy.
These include:
- Company directors
- Law and property roles
- Finance and accountancy roles
- Pub licensees
The best way to find out if insolvency impacts your job is to:
- Check with your professional membership body
- Talk to your trade union
- Ask to speak to your HR department confidentially
Bankruptcy is more likely to affect your job than an IVA.
In both cases, it becomes more of a problem the more senior you are.
Most jobs are not affected by insolvency, but do double check before going ahead.
Clare Lindley and James O'Carroll of StepChange Voluntary Arrangements are licensed to act as insolvency practitioners in the UK by the Insolvency Practitioners Association.
What do an IVA and bankruptcy have in common?
There are a few things that an IVA and bankruptcy have in common:
1. Both are recorded on your credit file
- For six years from the date they begin
- This can make it harder to take out further credit
2. Your name goes on the Individual Insolvency Register
- This is an online database of everyone who:
- Goes bankrupt
- Is in an IVA
- Has a debt relief order
- Your name is removed three months after the solution ends
3. Your debt is written off
This is either:
- When the IVA is completed or
- You receive your discharge from bankruptcy
4. You stop getting contact from the people you owe
- Both are formal debt solutions
- This means the people you owe cannot contact you for money
How will an IVA or bankruptcy affect my home?
IVAs and bankruptcy have different impacts on your home, depending on whether you rent or own it.
Renting during an IVA
An IVA should have no effect on a home you rent.
It is very unlikely you need to move.
Renting during bankruptcy
You can usually stay in your home if your rent is up to date.
You could lose your home if you have rent arrears when you go bankrupt.
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Some private landlords ask you to leave if you go bankrupt or take out an IVA.
Check your rental contract to see if it includes this condition.
Homeowners in an IVA
You are not forced to sell your home. But you may have to remortgage it six months before the end of your IVA.
You only have to remortgage if it is affordable.
If not, you may have to either:
- Pay an extra 12 months of payments into the IVA
- Raise money from a third party
Homeowners and Bankruptcy
The official receiver has two years and three months to decide what to do with your house.
- They may ask you to sell it if it has equity
- They may let you keep it if not
- They could ask you to sell it if the house goes up in value