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Home / Individual Voluntary Arrangement (IVA) / Can I be sacked from my job for being in an IVA?
INDIVIDUAL VOLUNTARY ARRANGEMENT (IVA)

Can I be sacked from my job for being in an IVA?

For most jobs, no. However, certain professions — particularly in financial services, some legal roles, insolvency practitioners themselves, and some public sector roles — have contractual or regulatory restrictions on entering an IVA. Check your employment contract before applying.

Most jobs are unaffected

The overwhelming majority of employees can enter an IVA without any impact on their employment. Employers have no automatic right to know about an IVA, and there is no general legal disqualification from working while in one.

Practical impacts (like defaulted bank accounts or credit checks for a mortgage) are separate from your employment status.

Financial services and regulated professions

The FCA's Fit and Proper test for people performing controlled functions in financial services covers financial soundness. An IVA is a formal insolvency and can be seen as evidence of financial mismanagement — though this is not automatic disqualification. Regulated firms often have internal policies requiring disclosure.

Insolvency Practitioners themselves cannot practice while subject to a Bankruptcy Restrictions Order or equivalent. IVAs are less clear-cut but IP regulatory bodies (IPA, ICAEW etc) will normally require disclosure and may investigate.

Some solicitors, chartered accountants, actuaries and other professionals working with client money have professional body rules requiring disclosure of formal insolvency. These do not always mean losing your role, but the professional body will typically want to be informed.

Public sector, security clearance and specific role types

Some public sector roles that involve access to sensitive financial information, developed vetting, or Ministry of Defence clearance may have specific requirements around financial standing. Check your contract and any vetting documentation carefully.

Prison Service, Border Force and some other roles may include financial standing checks.

General civil service roles are usually unaffected but there are exceptions in specific departments.

Company director roles

Being in an IVA does not automatically disqualify you from being a company director. Bankruptcy does automatically disqualify you; IVA does not.

However, some articles of association at specific companies include clauses that trigger disqualification on insolvency events. If you are a director, check the company's articles.

Company insurance policies (D&O insurance) can sometimes have consequences too — your firm may need to disclose.

Practical advice on checking

Before entering an IVA, review: your employment contract for any financial standing clauses, any staff handbook that mentions insolvency, any professional body rules that apply to your profession, and any security clearance requirements you hold.

If unclear, discreetly speak to a regulated debt help specialist or an employment law adviser before making the decision. IVAs are a bigger commitment than they appear once employment implications are considered.

If your employer would find out and it would cost you your job, an IVA is likely not the right route.

Key takeaways

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