Debt Negotiation

A Full and Final settlement in its most simplistic terms is a sum of money negotiated between two parties, where a debt is owed, settled in one payment, as a lump sum, for less than 100% of the total debt. This service can be used where you cannot afford to pay your debts.

Lump Sums

You will have to raise a lump sum to offer to your creditors. This sum of money will likely to be raised from one or more of the following:

  • House sale or re-mortgage
  • Third Party (family or friend)
  • Redundancy
  • Endowment policy
  • Pension Policy
  • Insurance settlement
  • Savings / investments
  • Inheritance / unforeseen windfalls

What happens

  • When we have confirmation (and evidence) that you have raised a lump sum and are satisfied those funds are secure, we will start negotiations with your creditors. 
  • We offer your creditors a ‘one off payment’ (no monthly payments) which is a negotiated outside any formal legal procedures (unlike an IVA and Bankruptcy). Therefore the outcome on your credit file, if the offer is accepted, will show you have ‘partially satisfied’ the balance owed to that creditor. The reason for ‘partially satisfied’ is that you are paying less than 100% of the balance, and whatever balance is left over  will be written off  by the creditor. This means you will never be pursued for the balance because the amount we offer is in settlement for their full balance and it is final so the debt dies upon acceptance. 
  • We ensure all creditors respond in writing that they agree to these terms so it becomes legally binding for you, meaning they cannot pursue you for any balance in the future. So, if all creditors accept our offers, your credit report will show you are debt free, with no reference to any insolvency procedure such as an IVA or bankruptcy.  This is because it has been negotiated between two parties, us and the creditors, and those negotiations stay confidential to both of us (i.e. it has been negotiated informally). Therefore should you ever be asked whether you have been subject to any formal insolvency proceedings, the answer is no. This is beneficial for any employment application or even when applying for future lending like a new mortgage or car finance.
  • Please note, your credit rating will be affected and this process upon completion does not restore your credit rating back to where it was originally started. This will take 6 years from the date of settlements.
  • Finally, as company policy, we will not hold your funds during this process. You will retain these funds securely and you will make the payments to the creditors once we have gained acceptances from all of your creditors in writing.  Only at this point will we require the money paying to us.
  • We will be transparent with you at the outset regarding our costs for performing this procedure successfully.