Full and Final Settlement
A Full and Final Settlement is where a creditor is contacted and asked to accept a lump sum payment as a reduced settlement on an outstanding debt. The level of the reduced settlement is dependent on the creditor, the type of debt and your individual circumstances. By accepting a reduced lump sum payment, the creditor agrees to write off any outstanding debt.
Before any proposals are put forward to a creditor for consideration, a full fact find exercise is undertaken. Information will be collated concerning your clients monthly budget, assets and reason for current financial hardship and with your client’s permission, all of their creditors to confirm the current balance. Using this information, a Creditors Report is prepared and sent to each of your client’s creditors with a payment proposal based on the lump sum available.
Creditors will only accept a reduced payment where it is demonstrated that your client can no longer maintain their contractual payments and the amount offered to the creditors is the maximum amount your client can afford to pay, or the maximum funds available. An experienced advisor at Newtomorrow Broker Services will be able to recommend this solution if it is the most appropriate advice for your client.
An informal debt solution generally offered to people will unsecured debts of at least £5,000.
More Info...
A one off lump sum payment to creditors which if accepted, could clear 40% of the unsecured debt.
More Info...
An affordable solution for people in Scotland with serious debt problems.
More Info...
A last resort available to people with serious debts based in England, Wales or Northern Ireland.
More Info...
Newtomorrow broker services has a team of experienced debt advisors who are ready to help you and your client in resolving their debt problems.
More Info...
All other alternatives will be explored before Sequestration is advised. Sequestration is available to people who live in Scotland.
More Info...