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Short answer; "Yes". One of the advantages of an IVA over bankruptcy is the fact that nobody needs to know about your IVA apart from you, your creditors, your Debt Advisor and your Insolvency Practitioner. For some people, the confidentiality of their financial situation is very important. When it comes to financial difficulties, many people are too proud to admit to them for fear that their friends and family find out. Being in debt is stressful enough without that.
If you opt for an Individual Voluntary Arrangement (IVA) to solve your debt problems, you may be concerned about the confidentiality of this agreement. Therefore, it is important to establish who will and who will not be informed.
This answer can vary according to your personal circumstances, but generally, an IVA agreement is completely confidential and discreet. If you are a tenant paying rent you need not worry; there is no reason why your landlord should ever find out about your IVA.
An IVA is a private agreement. It is an agreement between you and your creditors. The IVA is conducted by an Insolvency Practitioner (IP). These are the people that will have a detailed knowledge about your IVA and its terms and agreements.
Once your IVA has been agreed processed by your creditors, it will appear on the IVA register. This is basically a database with the details of every IVA. While this register is made public, chances are slim that your family or friends will search through it. However, this information is used by credit reference agencies to update their records.
An IVA is often described as your best alternative to bankruptcy. One of the reasons is that, unlike with bankruptcy, the details of your IVA do not appear in the press.
When you consider the number of people who will actually be involved in the IVA, the list is quite small. Most of the people in the know are those who already knew about your financial difficulties.
There are, however, some circumstances where you will have to reveal your IVA status. If you are a homeowner and share ownership with a partner, they have a right to be informed of your situation. You may be required to release some of your share of the equity from your home as part of your IVA. Your partner's share is safe but they will need to give permission before the IVA can proceed.
Once again, an IVA can be as private as you want it to be. Your employer, family, friends, or landlord have no need to know your financial status when making your application or during the process of an IVA.
Do you qualify for an IVA?
For more information see:
IVA pros and cons
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