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IVA : Who Will Know About My IVA?
For some people, the thought of friends or family finding out about their financial difficulties causes great concern.
Having a debt problem brings stress and pressure enough without having to worry about who will find out, and indeed, what people will think should they find out.
Well, should you choose to resolve your financial problems by using an Individual Voluntary Arrangement (IVA), it will be important to you to establish who will and who won't be informed.
This answer will vary, depending on your personal circumstances. If you are a tenant, lodger or living with your parents, there will be no reason why family or friends should ever find out about your Individual Voluntary Arrangement (IVA).
This is because an Individual Voluntary Arrangement (IVA) is a private agreement. It is an agreement between your creditors and you. The agreement is proposed through an Insolvency Practitioner. All these people will have a detailed knowledge of your Individual Voluntary Arrangement (IVA) because it involves them to some extent or other.
Once the Individual Voluntary Arrangement (IVA) has been agreed by your creditors, it is recorded on the IVA register, which is a database with the details of every Individual Voluntary Arrangement (IVA) nationwide. This register is a public record, and everyone is at liberty to access the register for information, but in all probability, your friends and family will not go and search through it.
Credit reference agencies will use information from this register to update their records of your credit history.
However, the details of your Individual Voluntary Arrangement (IVA) will not appear in the press. This is very different to bankruptcy, for if you declared yourself Bankrupt, your Bankruptcy would be published in the press.
So, to clarify. With an Individual Voluntary Arrangement (IVA):
Your employer will not be informed.
Your family will not be informed.
Your friends will not be informed.
So, when you take a look at the people who will know about your Individual Voluntary Arrangement (IVA), you will see that the list is small, and mostly contains people or organisations who knew of your financial difficulties in the first place.
However, if you are a homeowner, and share ownership with your partner, or hold a joint mortgage with another party, then things do change.
This is because it may become necessary to release some of your share of the equity from your home as part of your Individual Voluntary Arrangement (IVA) agreement. Your partner will not have to release their share of the equity, but they will need to give permission before the Individual Voluntary Arrangement (IVA) begins, for you to release part of your share of the equity via a re-mortgage when the time comes, which is usually towards the end of the Individual Voluntary Arrangement (IVA).
If you would like further information on the IVA Process, take this link to our free guide all about possible equity issues with an Individual Voluntary Arrangement (IVA).
If you would like to discuss this subject further, or if you have any questions regarding IVAs, why not call myIVA-Adviser.com for free, confidential advice on 0800 088 7503 anytime.
