What is a full and final settlement offer?
A Full and Final Settlement Offer is an offer you make to your creditor(s) for a substantial amount less than the outstanding amount owed to pay your debt in one lump sum payment in return, your creditor may agree to write off the rest of the debt.
Why would my Creditors accept a Full and Final Settlement Offer?
There are a number of benefits to creditors in accepting a full and final offer:
- It avoids legal expenses. By making you bankrupt, a large portion of the lump sum would be taken in legal fees giving the creditor a substantially lower amount.
- Some creditors, especially collection agencies prefer one lump sum payment now, as opposed to smaller monthly payments over a longer period.
- Depending on your personal circumstances, some creditors may see that a lump sum payment is the best option.
Simply call us on 0800 634 7053 or complete the Quick Enquiry form on the right to discuss your situation with a trained advisor.
Advantages of a Full and Final Settlement Offer?
- If accepted, you would pay less than you would otherwise have to.
- Your debt is paid off much sooner allowing you to start again.
- Your creditors should mark your debt on your Credit File as “Satisfied” so future searches on your credit file to lenders will show that you have successfully paid your debt.
- Paying your debt may improve your credit rating.
Disadvantages of a Full and Final Settlement Offer?
- You will need a cash lump sum to pay your debt.
- There is no guarantee your creditors will accept your offer.
- Clearing your debt will not remove any Default Notices or CCJs previously taken against you from your record. They will remain on your credit file for 6 years from their point of entry.
How do I make a Full and Final Settlement Offer?
You may have a lump sum that you need to divide up amongst several creditors. DEBTPLAN Direct™ can advise you on how to fairly divide this to creditors on a pro-rata basis. We will act on your behalf and send your offers to all your creditors. No creditor will be paid unless an offer is agreed in writing.
Call us on 01494 546 088 or complete the Quick Enquiry form on the right to discuss your situation with a trained advisor.
Can I make a Full and Final Settlement Offer if I am in an IVA or Debt Management Plan?
Yes. DEBTPLAN Direct™ can act on your behalf to negotiate the best deal for a full and final offer, whether or not you are currently in an IVA or Debt Management Plan. We can also help if you have an IVA or Debt Management Plan with another company.
Call us on 01494 546 088 or complete the Quick Enquiry form on the right to discuss your situation with a trained advisor.
