What is the downside of going forward with an IVA?

[s24]

What is the downside of going forward with an IVA? I work for a bank would me doing an IVA make problems for myself at work?

[Adam Davies]

Hi
You must check the terms and conditions of your employment before contemplating an IVA.Some financial institutions do not allow employees to carry on if they have entered into banruptcy or an IVA.
In general the downside of an IVA is a fairly tight and inflexible budget,however the new protocol allows IPs to vary this by upto 15% without the need for a creditors meeting.If ou are a property owner you will be expected to release most of your equity[upto 85%ltv]into your IVA in the final year.Finally the details of your IVA are held on the insolvency register,accessible by all that are aware of it's existence
Regards

[size5]

I am coming across more and more bank employees and I concur with what Andy says, I would advocate ringing your personnel or HR department, anonomously at first, and giving them a brief outline of your situation.
Some will be ok with an IVA proposal, others won't and will advocate a DMP as the responsible way forward.

Good luck.

[wen]

Remember also, that bank employees probably hold a bank account with their employer (I remember reading on HSBC website that you are expected to have your salary paid in to 'their' account), so hopefully they are not a creditor!

Without speculating, after seeing how HSBC close their customers accounts regardless of being a creditor or not for those with an IVA, I doubt any employer of theirs would stand a chance of maintaining employment with them during an IVA - just my opinion of course - I may be totally wrong.

[size5]

You are correct to a point, but it is also not necessarily the case that wages MUST be paid into their own account, I have many bank employee clients whose wages are now paid elsewhere. Again it is down to the individual bank and its policy hence why the 1st port of call should be a call to the HR department so that you can get it straight from the horses mouth so to speak.

[ianmillington]

It can also depend on the type of work you do at the Bank.

You need to anonymously check the Bank's HR policy on this.

[JuliaE]

Is the new protocol binding or voluntary for companies and where could I find it to look at.

[size5]

It is a voluntary code, you can simply type new iva protocol into google and there will be a series of articles/info on it.

Regards.

[JuliaE]

thanksyou size5