Cancel your Creditfix IVA and go Bankrupt
- 24 Dec 2021
Are you in an IVA with Creditfix and unhappy? Perhaps they are asking you to pay more? Maybe you just feel its the wrong solution for you. Find out if stopping your IVA and going bankrupt would be a better for you.
Included in this article:
- Options if you are unhappy with Creditfix
- Advantages of going bankrupt v staying in your IVA
- What about the downsides of going bankrupt?
Rather speak to a person? Call us on 0800 044 3194 or click here to complete the form below and we’ll call you back
Options for cancelling your IVA if you are unhappy with Creditfix
Once you have started an IVA, it is not possible to switch to a different company. But, if you are unhappy with your current provider (whether this be Creditfix or someone else), you do have some options.
You could cancel the agreement and start again with a different company. Your payments could be reduced to a more affordable amount and any new debts added. However, you would have to start from the beginning again and pay for another 5 years. This is not ideal.
But what about cancelling your IVA and going bankrupt? This may sound scary. But in fact, bankruptcy may be a far easier way for you to deal with your debt.
It is not possible to simply change the provider of your current IVA. You can’t switch IVA companies half way through. However, you can stop and go bankrupt.
Advantages of going bankrupt over staying in your IVA
Where your payments to Creditfix are less than £100/mth, in reality you probably have little or no surplus income. If so, you will not have to make any monthly payments once you are bankrupt.
Creditfix might telling you to pay more into your IVA because you have arrears. Perhaps you previously earned overtime or got a windfall that you were unaware you had to pay to them. If you go bankrupt, you will not have to worry about this. You won’t have to pay any of the arrears. All the debt you owe is written off.
You might be surprised to learn that going bankrupt will have no worse effect on your your credit rating than being in an IVA. The only thing to consider is that the 6 years of having a poor credit rating will start again. However getting a mortgage in the future will still be an option if you wish.
If you do have a surplus income, you still have to pay this for 3 years if you go bankrupt. However, overall you are likely to pay far less than sticking with your IVA.
What about the downsides of going bankrupt?
There are some downsides of going bankrupt which you also need to understand.
You can’t go bankrupt for free. You will have to pay an application fee to the government which is currently £680. But remember, you will not be paying your IVA and you will be able to save this money towards the cost. Your creditors are unlikely to start chasing you again for 3-6 months so you have plenty of time to get together the money you need.
If you rent your home, there should be no issue if you go bankrupt. However, if you are a home owner, it may not be right for you. It depends on the amount of equity you have. Where there is a significant amount, your property is likely to be at risk and bankruptcy may have to be avoided.
You keep your car if it is worth £1000 or less. But what if it is worth more or its on finance? You won’t definitely have to give it up but there could be extra costs involved.
Will your job be affected? The answer to this is almost certainly no. You will continue working in exactly the same way as when you were in your IVA. Normally your employer won’t even be told.
Stopping your IVA and going bankrupt could be a much better solution for you than staying in your IVA with Creditfix. Give us a call on (0800 044 3194) or fill in the form below to find out if it is right for you.