Do the debt solutions have any negative impact on your job?

Many debt-ridden people often worry about job loss while thinking seriously about debt management solutions. Your job is very important and if you lose it, you won’t be able to pay back your debt and it will further worsen your financial situation.

But the fact is that you may not be safe with your job while opting for a debt solution, in certain cases.
You need to check your employment contract in order to ascertain whether it would be good for your job to take a debt solution or not.

A debt management plan is an agreement between you and your creditors and in most cases, employers won’t express any concerns about it. However, in some cases, a legal action may be initiated against you by your employer.

On the other hand, an Individual Voluntary Arrangement is an agreement under lawful jurisdiction between you and your creditors and thus your employers are likely to raise their concerns about your IVA. As a negative consequence, you may not be given a job promotion for entering into an IVA with your creditors.

People working in the financial sector and legal and accountancy firms are more likely to be affected because of their IVA or bankruptcy and they can see a negative impact on their jobs.

People working with the Police and Armed Forces may also face some negative consequences when in bankruptcy. Also, Local Authority Officials or Members of Parliament can be at the receiving end of their poor money management skills.

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