A Guide to IVAs and the Insolvency Register

| April 23, 2013

Individual voluntary arrangement

When your creditors approve your IVA, your will be entered onto the insolvency register.

This article describes what the insolvency register is and what the implications are when your name is added.

What Is An IVA?

An IVA, or individual voluntary arrangement, is a way of dealing with problem debts. The client sets up a formal, legally binding agreement to repay a set amount each month. In return, his or her creditors reduce the amount that must be repaid before the debt is considered settled.

IVAs must be set up and overseen by a licenced Insolvency Practitioner.

What is the Insolvency Register?

The insolvency register is an official record of all insolvency cases. There are separate registers for England and Wales, Scotland and Northern Ireland.

The names on the register are all people who are insolvent, or whose insolvency case has been closed within the last three months. When you take out an IVA, your name will be added; it will be removed shortly after your IVA is settled.

The register also includes details of people who are bankrupt, or on a debt relief order. It doesn’t contain the names of people who are on debt management plans at this stage

What Information is Published?

People who search for you will be able to see a range of basic details, including any bankruptcies or IVAs under your name, your address, your date of birth, your Insolvency Practitioner’s details and some details about your IVA.

The insolvency register is public and can be searched online for free. Any Official Receiver’s office can also provide free access to the insolvency register, although you may need to make an appointment.

Are The Details Published Anywhere Else?

No. One of the benefits of an IVA is that your details are not published in the local press, which is one of the major differences between an IVA and bankruptcy.

Should I Be Concerned About The Insolvency Register?

The insolvency register is public, and in that respect, many IVA clients are uncomfortable about having their details registered to it. However, it is a necessary part of taking out an IVA and dealing with your debts.

If you are concerned about your employer finding out about your IVA, check your contract of employment. In some cases, you may be required to tell your employer about your IVA anyway, so it is best to do this at the first possible opportunity.

In some cases, a Google search for your name will bring up your entry on the insolvency register, but this is only likely to happen if your name is very unusual. Most people have no idea what the insolvency register is and would have no reason to stumble across this information by accident.

Try not to let the insolvency register become a barrier to sorting out your debt problems for good as it is extremely infrequent that it will have any bearing on anything relating to your personal life.

 

A Guide to IVAs and the Insolvency Register

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