Will my family or partner find out about my IVA?
An Individual Voluntary Arrangement (IVA) is a private arrangement between you and your creditors so there should be no need for your family or partner to find out.
The only exception to this would be if you're co-owner of a property or if you have joint debts with a 3rd party.
Due to its legal status details of the IVA must be kept on the >IVA Register.
The reality is, of course, that friends and family are highly unlikely to access the register even if they knew it existed. However, the thought of your IVA becoming public knowledge is bound to cause anxiety due to its sensitive nature.
The only people who will know about your IVA are those you choose to tell, the professionals who administer it, the Credit Reference Agencies and, of course, your creditors.
Co-owning a property
This does change somewhat if you're buying a property with another person. The Insolvency Practitioner will need to ring fence their share of any equity and protect it from your creditors.
Under the terms and conditions of your IVA, your co-owner will also have to give their permission to allow you access to your share of the equity via a remortgage or secured loan, should there be any in the final year of your IVA.
Joint debts with a 3rd party
If you're entering into an IVA and have a joint debt with a 3rd party, this can complicate things a little.
Under the 'Joint an Several Liability' clause in the contractual conditions of a joint debt, the creditor has legal redress against both parties for the full recovery of the debt.
This means that if one party is unable or unwilling to repay the debt, the legal liability to repay the debt falls completely on the other party.
If one party is entering into an IVA, the remaining party will become fully liable for the total outstanding balance of the debt as a result.
Whilst there is no legal requirement to notify the other party of the IVA, the chances are they will be contacted by the creditor as they seek to enforce the debt.
For further information of joint debt liability please call 0800 088 7503.
Professional IVA Advice
If you would like to have a chat with an IVA specialist please call our helpline on 0800 088 7503.
There's no charge for a consultation, there's no obligation to act on our advice and your enquiry will be held in the strictest confidence.
Or, alternatively, complete this form and one of our advisers will call you at your preferred time.