You can legally cancel your Creditfix IVA if you are unhappy. However you should also plan for how you will manage your debts once you are out of the Arrangement.
Included in this article:
- How do you legally cancel your Creditfix IVA?
- Will Creditfix make you bankrupt?
- What are your options after your IVA is cancelled?
Want advice about cancelling your IVA? Call us (0800 077 6180) or complete the form below. It’s free and confidential
How do you legally cancel your Creditfix IVA?
You are legally allowed to cancel your IVA with Creditfix (or any other IVA company). The agreement is binding on your creditors, but you can get out of it at any time.
The way to do this is simply stop making your payments.
Cancel your standing order or, if your payment is being taken from your debit card, contact your bank and report your card as lost or stolen. The payment can’t be taken from the new card unless you re-authorise it.
When Creditfix contact you, just confirm your decision to them. They may try and persuade you to stay in your IVA. But they can’t stop you from cancelling if that is what you want.
Remember, Creditfix are allowed to take their costs and fees out of the money you have paid into your IVA. Your total debt may therefore be the same as when you started.
Struggling to get your head round all of this? We can help. Call us (0800 077 6180) or complete the form below. The advice is free and confidential.
Will Creditfix make you bankrupt?
Although you may have been told otherwise, it is extremely unlikely that you will be made bankrupt after you cancel your IVA. In most cases it simply doesn’t happen.
Creditfix can’t make you bankrupt themselves because you don’t actually owe them any money. They are just supervising the agreement on behalf of your debts.
Banks, credit card companies, and other commercial lenders are extremely unlikely to do it. This is because they know if you are bankrupt, they can no longer collect the money they are owed directly from you and are likely to end up with nothing.
The only time you really have to worry about being made bankrupt is if you have a large tax debt with HMRC or you owe a significant amount to an old supplier or hostile individual. Talk to us if you are worried about this.
What are your options after your IVA is cancelled?
You should put a plan in place for how you are going to manage your outstanding debt once your IVA is cancelled. You will still be liable for paying your debts. This means ignoring them and doing nothing is not sensible.
One option is to start a new IVA with a different company you feel more comfortable with. This is allowed and might be the right way to go if the alternative would be paying your debt for many years in a debt management plan.
If you can afford to do so, you can make arrangements with your creditors to pay off the debts yourself. Alternatively you can use a debt management firm to put a payment plan in place for you.
Where you are not a home owner, you should also take advice about going bankrupt. The advantage of this is that you will only have to make payments towards your debts for 3 years. You would pay for 5 years if you start a new IVA and possibly longer in a debt management plan.
After you are bankrupt, you are unlikely to have to make any further payments at all if your income is just made up of benefits.
Want more advice about cancelling your IVA and how to manage your debt afterwards. Call us (0800 077 6180) or complete the form below. It’s free and confidential.
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