What is an IVA?

IVA Alternatives

Protecting My Career

Most careers are safe, whatever option you choose to tackle your debt problems. Your employer is unlikely to find out that you have debt problems, unless there is a clause in your contract of employment or professional regulations which requires notification. The FIRST step is to read your contract of employment and professional regulations to check whether your employer or professional body needs to be informed.

A CONSOLIDATION LOAN enables you to roll all your outstanding credit card debts into a single loan with a preferential interest rate. Your employer will not find out about this unless you have a loan with your employer and are paying it off.

RE-MORTGAGING YOUR HOME is another option if you have enough equity in your home to cover the debts that you owe. Your employer is unlikely to find out about this arrangement and would probably be unconcerned if they did. Interest rates are likely to be lower than those that apply to unsecured debt, though your home will be at risk if you are unable to meet repayments. We would recommend that you consult an Independent Financial Advisor before taking this step.

A DEBT MANAGEMENT PLAN enables you to repay all of your credit card debts, but over a longer time period and is likely to incur additional interest charges. Your employer need only find out about a debt management plan if they are included in the plan. But remember that such plans won't stop creditors seeking charging orders on any property you have, obtaining County Court Judgments or attachment of earnings orders. In the latter case, your employer, obviously, would be informed.

An INDIVIDUAL VOLUNTARY ARRANGEMENT (IVA) is a binding agreement between you and your creditors in which you agree to make manageable payments every month, usually over a period of five years, after which you will be debt free. Your employer would only be notified if they were also a creditor. However, certain professional bodies require you to notify them of your intention to apply for an IVA.

Filing for BANKRUPTCY requires a notice to be published in your local newspaper and in a publication called the London Gazette. Certain professions and occupations are closed to, or do not look favourably upon, bankrupts.