Summary: This article explains who is advised about an Individual Voluntary Arrangement (IVA) and what potential impact entering an IVA could have on a tenancy agreement.
One of the disadvantages of bankruptcy, apart from the possibility of having to sell the family home, is the stigma that may be associated to it. Furthermore, bankruptcy can have serious implications on an individual's employment, depending on their profession, as well as living arrangements if they are a tenant. A landlord may well stipulate in the contract that they will not rent a property to an individual that has been declared bankrupt as there could be a danger of the rent going into arrears. One of the conditions of bankruptcy is that the information is published on the Insolvency Register, a publicly accessible record, as well as in the London Gazette, meaning it can be difficult preventing some individuals finding out about the situation.
If I enter an IVA is the fact published in the press, and could my landlord find out?
Unlike bankruptcy, an IVA is not published in the London Gazette, however it is still recorded on the Insolvency Register. Should anyone actively search the register, they could still find out about the IVA. As it is unlikely a landlord will be concerned with the Insolvency Register, they are unlikely to find out about the IVA, but it is important to check the terms of the tenancy agreement to check if there is a clause about IVAs and/or bankruptcy. If there is, it is advisable to notify the landlord. It may be that they can speak to the IVA supervisor to be reassured that rent payments are budgeted for.
There is no mention of IVAs in my tenancy agreement, should I still tell my landlord?
While it is not vital, it is always worth an individual being open and honest about their situation. Should the fact raise any concerns with the landlord, they could be put in touch with the IVA supervisor for reassurance.