How We Can Help
As part of our longer term strategy to ensure you become debt free in the shortest possible timescale, or where access is available to a lump sum which can be distributed amongst your creditors, we will assist you with the relevant creditor negotiation ensuring the most expedient outcome.Before making an offer we first establish the precise amounts owing to creditors, we can then calculate from the amount raised the pro-rata payment that can be made to each of them.
A carefully worded formal offer letter is sent out to each creditor and it is important that we have written confirmation from each one before any payment is made. We have to make sure that each creditor agrees in writing to change your credit file to show the balance is satisfied and the relevant date. Care is taken to ensure that there is no possibility of future disputes which have been known, especially where debts have been sold on and the purchaser attempts to reactivate collection activity.
It always provides added protection to have a third party involved in the proceedings as this helps the agreement to be more legally binding where the creditor accepts the money via a third party. Offer letters are sent to creditors along with a schedule which outlines the amount available and how the distribution is to be made, which enables each creditor to see that they are being treated fairly. It is not uncommon for some creditors to turn down the initial offer and we continue further negotiations if required to achieve the best possible outcome.
Why Would You Make a Full and Final Settlement Offer?
There are a number of circumstances where a Full and Final Settlement may be the best way to clear your debt. For example if you have friends or family that have offered the lump sum, you have savings, you have released equity from your property or if you have come into some money through an inheritance or windfall. If you are thinking about a way to raise a lump-sum then it is important that you don't sell items that are essential or are needed for a reasonable standard of living. You don't want to sell your car if you need it for work purposes or sell tools that you need for your trade. But there may be ways that you can raise additional funds, by selling antiques or shares for example.
How Would I Make a Full and Final Settlement Offer?
There are a number of different techniques that Debts can employ to achieve your settlement, which depends on your creditors, how long you have had the debts and whether you are in arrears.
Remortgage or/and IVA Settlement
A more complicated variant is when we recommend a remortgage that will not pay off your debts but allows you to realise sufficient funds to make an offer to your creditors that is significantly less than the amount that you owe. This offer could be an agreed but informal arrangement or a formal one off IVA payment.
