Unhappy with Creditfix – What are my options

Unhappy with Creditfix – What are my options

If you are unhappy with your Creditfix IVA, you should first try to resolve the problem directly with them. But what if you can’t reach an agreeable solution? There are a number of options you an consider.

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Already in an IVA and need help?

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Can you move from Creditfix to a different IVA company?

If you have a problem with the way Creditfix are managing your IVA, first try your best to resolve this by talking to them. It is possible they have misunderstood your current financial circumstances or are not aware of the full facts. Most problems can be sorted out this way.

But, what if you can’t find a mutually agreeable solution?

It is important to understand that it is not possible to switch the management of your IVA to a different company. Once the Arrangement is up and running, you can’t decide to move to a different provider. So if you are unhappy, there are only two options:

1: Live with it and accept the situation.
2: Cancel your IVA with Creditfix and do something else.

In certain circumstances, it is possible for your IVA to be moved to a different company. But this would be without your agreement where, for example, the original company is sold or closed.

Cancel and start a new IVA with a different company

You are allowed to cancel your IVA if you decide to do so. It is a legally binding agreement on your creditors. However, you can back out of it at any time.

The way to do this is first cancel your monthly payment. If it is taken directly from your bank debit card, you may have to cancel the card and ask the bank to issue a new one.

Then inform Creditfix. They may ask you to confirm the reason you are cancelling and how you plan to manage your debt going forward. They may try to convince you not to cancel. However if your mind is made up, there is nothing they can do to stop you.

You are then free to talk to a different company about starting a new IVA if you wish. However, you can’t start the application process until you have received a termination letter from Creditfix confirming your original IVA has been cancelled. This could take 3-6 months.

It is also important to remember that you will need to start any new IVA from the beginning. Any payments you made into the old agreement will not be taken into account.

Cancelling your IVA will often mean that some (if not all) of the money you have already paid into the Arrangement is lost. Creditfix are allowed to retain sufficient funds to pay the fees and costs they have already incurred.

Choose a different debt solution

After you have cancelled your IVA with Creditfix, you don’t have to start a new one. You can deal with your outstanding debt in a different way if you wish.

The first option is to manage the debt yourself. There is nothing to stop you setting up payment agreements directly with your creditors. Alternatively you can speak to a debt management company to assist you with setting up a debt management plan.

You will have to wait until you get a termination letter from Creditfix before you can use either of these options. During this time, you can save the money you would have otherwise paid into your IVA. You could then use this to settle one or more of your debts. Your creditors will not chasing you while you wait. As far as they are aware, you are still in your IVA.

An alternative option is to go bankrupt. This could be an ideal solution particularly if you live in rented property because it is unlikely you will have anything to loose.

All your unsecured debt will be written off (including any new debt taken since starting your IVA). If you have little or no surplus income you will not have to make any further monthly payments.

There is no need to wait for the Creditfix termination letter. You could go bankrupt tomorrow if you want.

Before cancelling your IVA, have a chat to us. We can advise on whether it is a sensible option and the best way to manage your debt going forward. Give us a call (0800 011 4712) or complete the form below and we’ll call you.