Full and final settlement is a debt clearing solution whereby our company, on client’s behalf, negotiates with their creditors to find a solution which involves them repaying a lesser amount than they actually owe, over an agreed period.
This solution will often involve the debtor using some assets as a part of their offering to the creditors in addition to a lump sum or a regular payment program. This solution is suitable for debtors with any level of debt who have little or no disposable income, but who do have a lump sum amount available (perhaps from the sale of assets) that they are able to offer to their creditors in exchange for them agreeing to write off the remainder of the debt.
Full & Final Key Steps Explained
- Debtor contacts debt management company to find out about full & final settlement.
- Having compiled financial statement advisor agrees that the debtor has no disposable income and full and final would be the best option for this situation.
- Advisor prepares offers and send it to the creditors.
- Creditors accept the offer and payment is made.
- Creditors update debtors credit file to show that the debt is paid in full or partially settled.