How is your job affected by a debt management plan
Being in a debt management plan should not affect your job in any way. It is a private agreement and your employer will not be told.
Included in this article:
- Will your employer find out about your Plan?
- What if you are a company director?
- Which jobs are affected by a debt management plan?
- Can you get a new job during your Plan?
Want more advice about starting a Debt Management Plan? Give us a call (0800 044 5407) or complete the form below
Will your employer find out about your debt management plan?
Your employer will not be told if you start a Debt Management Plan (DMP). Once the Plan is in place, your job should not be affected in any way.
There is no official register because it is an informal solution. As a result, it is virtually impossible for your employer to find out unless you tell them.
Your Plan payments which come out of your bank account. They are not taken directly from your wages and they are nothing to do with your employer.
Can you have a DMP if your are a company director?
There is no legal reason why you cannot continue work as a company director while you have a debt Management Plan.
You are not formally insolvent. This means you don’t need to tell any of your fellow directors about your situation unless you want to.
However, you can’t include tax debt in your Plan. If you personally owe money to HMRC you will normally need to consider using an IVA.
Which jobs are affected by a debt management plan?
There are very few jobs that are actually affect by a debt management plan.
Even if your contract states that you must inform your employer if you become insolvent, you don’t have to tell them about being in a DMP. It is an informal payment agreement you are not classed as formally insolvent.
That said, the Plan will negatively affect your credit rating. A record of missed payments and perhaps the DMP itself will be recorded on your file.
This could cause you a problem if your job requires you to keep a clean credit record and your employer carries out regular credit checks against you.
If you are requited to have a clean credit rating by your employer, you need to speak to us before starting a starting a debt management plan.
Can you get a new job during your Plan?
Generally speaking, your options for getting a new job will not be affected in any way if you are in a debt management plan.
It is very unlikely that you will be asked if you are in a Plan on any job application. It is possible that a potential employer might ask whether you are bankrupt or have an IVA. If they do, you can truthfully answer no to this question.
No potential employer will be able to find out about your DMP unless you tell them or they do a credit check against you. This is only required in a very small number of financial services related jobs and you would have to give your permission first.
When you receive a new employment contract to sign, it might ask you to confirm that you are not bankrupt or insolvent. Being in a DMP does not mean you are formally insolvent. As such, you can sign the paperwork no problem.
Want to start a debt management plan? Call us (0800 044 5407) or complete the form below. The advice is free and confidential.
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