Credit Unions?

poorgrad

Hi, just wanted to ask a quick question about credit unions. I am currently paying into one but looking to go for an IVA or DMP. Will I need to stop paying into it? The only reason I ask is because it comes straight out of my pay - so if I tell them I can no longer pay them they will probably just take it straight out of my pay anyway!

Tixy

You mean you have a loan with the credit union? Do you have savings with them as well? if so they will offset these against any loan you have.
Yes it would usually go in your DMP, if they have a right to continue to take it from your salary then it may be that your DMP provider will agree to exclude it from your DMP.
If you went for an IVA then presumably they would be agreeing to the IVA and so not continue to take it from your salary.

poorgrad

Thanks Tixy. I was worried that it might affect my job. Is there any likelihood that they would inform my employer about an IVA?

Tixy

The credit union - unlikely assuming the credit union isn't directly connected to your employers.
But with an IVA your employers could find out anyway (as could anyone) by searching the insolvency register.
Depending on what your job is you might want to check if you contract of employment says you must inform your employer if you enter an insolvency agreement/go bankrupt etc.

poorgrad

No they are not directly connected. I was just thinking that because they take the payment from my salary then they may decide to inform payroll, if they chose to. My contract of employment doesn't have anything about insolvency/bankruptcy.