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.

Included in this article:

Already in an IVA and need help?

Give us a call: 0800 011 4712 or complete the form below to speak to one of our experts

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.

Struggling to get your head round all of this? We can help. Call us (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.

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 some (if not all) of the money you have already paid into the Arrangement will be taken by Creditfix to cover their fees and costs. You will need to start any new IVA from the beginning.

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.

Thinking about cancelling your IVA? Give us a call (0800 011 4712) or complete the form below. The advice is free and confidential. 

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15 thoughts on “Unhappy with Creditfix – What are my options

    Liam Whea says:

    Will creditfix take extra payment if I work extra hours

      Hi Liam

      Yes, if you do overtime in any month during your IVA, you will usually have to pay extra into your IVA for that month.

      You are allowed to earn up to 10% of your normal monthly take home pay and keep all of this. However, anything extra has to be split 50/50 with 50% payable into your IVA. Given this, if you do extra hours in any month, you must tell Credit Fix. They will then calculate the extra that you owe.

    Scarlett says:

    Am i right that if i start a new iva i will effectively be having to start paying off all my debt again

      Hi Scarlett

      If you cancel your IVA with creditfix and decide to start a brand new IVA, then you are right. In effect you have to start back at the beginning again. This would mean 5-6 more years of payments. Not an ideal place to be in.

      For this reason, many people I work with who decide to cancel their IVA, then go bankrupt rather than starting a new IVA. This option can work really well because if you have little or no surplus income, you do not have to make any further monthly payments towards your debts. As such after a year, your debt is written off and that is the end of it.

      If you do have a surplus income and can still afford to pay something towards your debt, you still have to after you go bankrupt. However, the payments last a max of 3 years (2-3 less than starting a new IVA).

      Note: Going bankrupt option is normally only available if you are not a home owner (ie live in rented accommodation). You can read more about this option here: Stop your IVA and go Bankrupt.

      If you would like to have a chat with me about your personal situation and what might be the best way forward for you, I would be happy to have a chat with you. The advice is free and confidential. Please give me a call when you are free (0800 011 4712).

    Dion M says:

    Hello, I’m just looking at the solution of cancelling my Iva and moving to a dmp, I feel as though the Iva was pushed onto me, and the debts I owe isn’t extreme to need an Iva, I am paying a lot towards fees when really I don’t owe a life changing debt to be having these fees?

      Hi Dion,

      If you feel your IVA is not the right solution for you, there is nothing to stop you cancelling and then paying off your debt with a debt management plan. You can read more about the process and what you need to do by clicking on this link: Stop your IVA and start a debt management plan

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