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F


Full and final settlement offers

You can ask a creditor to accept a lump sum payment which is less than the full amount you owe, in return for the creditor agreeing to write off the rest of the debt. This is called a full and final settlement offer.

There are no set rules on when a creditor will agree to accept a full and final offer. Generally, a creditor may be more likely to accept your offer if:

•you are offering to pay a significant part of your debt;
•you have few other assets that you are not using to make your full and final offer; and
•your long term situation means that the creditor is not likely to receive the rest of their money within a reasonable period of time.


You could make full and final settlement offers to your creditors if you are prepared to use or sell your assets to settle your debts, or if you know people who would be prepared to help you to do this.

Read more about making full and final settlement offers in England and Wales.

Read more about making full and final settlement offers in Scotland.