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Could Full & Final Settlement be your best solution?

  • Write off up to 85% of your unsecured debts
  • You'll get one, affordable monthly payment
  • Your interest and charges will be frozen
  • Government-backed debt help
  • Write off debts up to 85%
  • Affordable monthly payment
  • Interest and charges frozen

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How IVAs Work

What is an Individual Voluntary Arrangement ( IVA )

IVA's were first introduced as a solution to problem debt in 1986 and now are the most popular formal solution to clear debt. They are designed to make repayments more manageable and affordable. These schemes must be set up by a registered Insolvency Practitioner (IP) who will split your payments between your creditors. These are legally binding agreements in which you pay back all or part of your debts.

The arrangement is put together to prevent any additional interest and charges being added your existing debt (creditors can't change their mind!) These will normally last 60 months, and during this period you will be expected to make one affordable payment each month towards your debt. At the end of 5 years* and any debt that remains will be legally written off.

With no set up fees involved!


Just think, no more:

  • Nasty phone calls from creditors
  • Borrowing money from friends and family
  • Payday loans you have to keep rolling over
  • Dreading bills because you know you can’t pay
  • Running out of money within days of being paid
  • Having your cards declined at the till
  • Paying hefty charges for being a few pence overdrawn.
  • Pretending everything is ok when it’s not!

IVA Example

Here is an example of how an IVA could help with .

Example Unsecured Debts

1 Personal loan £8,000
2 Credit card 1 £6,812
3 Credit card 2 £4,092
4 Credit card 3 £5,399
4 Credit card 4 £5,200
4 Overdraft £700
Total Owed £30,204

Your Monthly Repayments Would Be

an IVA
(total contractual repayments)
an IVA
(total contractual repayments)
Reduced by

* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.

  • Reduce up to 85%
    of all debts

  • Lower your

  • No upfront charges
    to pay

  • Stop creditors

  • Pay an affordable
    amount each month

  • Freeze interest rates
    and charges

Full and Final Settlement Agreements

For many people who may be struggling with debt, the opportunity to consolidate them or to reduce their urgency is often enough. As debt support advisors, we are always on the lookout for the best ways through which you can reduce the amount of debt you owe to lenders and which routes may be of most benefit to you both short and long term. While many people who approach us register for various services such as IVAs or debt management plans, there may be an easier option for those who are looking for a simple way to at least clear the majority of funds they owe to their creditors.

F&F settlement success stories are fairly common – and while they are hugely popular with many people who may find themselves in debt, it may not necessarily be the most convenient of options for everyone. These settlements essential line up proposals for creditors in an effort for debt to be relieved to a certain degree – meaning that you are effectively making a request that the full payment demanded may be waived in lieu of a majority contribution. These types of proposal are not necessarily accepted across the board – which is why it is always essential to seek the support of experienced Debt Advisors to ensure that you may approach your creditors in the most appropriate fashion. There are many other debt relief and arrangement options that you may consider, too – and we are always happy to discuss them with you in further detail should you wish.

Making a Full and Final Settlement Offer

Full and final settlement agreements, or F&Fs for short, are widely sought out by people or firms who may find themselves in a position where they may be able to pay the majority of debt owing to their lenders, but not necessarily the whole amount. Therefore, this form of debt relief is effectively a proposal in an effort to reduce the amount which is owed to each creditor in turn. If accepted by a creditor, such proposals will require them to take no further action once a lesser amount has been agreed – and there are circumstances under which a creditor may even approach you to suggest such an option.

Partial settlement proposals are a great option to take if you owe a considerable amount of money to various parties, and if you are in an affluent enough position to be able to clear the vast majority of the funds expected of you. To be able to make such proposals, you will largely need to have a lump sum of money available that can be directly used to pay towards the various creditors you may owe money to. This means, under some circumstances, you may need to transfer or cash in certain assets. This could mean cars, properties or even inheritances – compensation payments or redundancy money, too, could also be used to help clear an F&F agreement.

What Are My Chances of Having a Full and Final Settlement Arrangement Agreed Upon?

The fine print states that a creditor does not have to agree to such deals that may be proposed – and, the other way around, neither do you. Creditors are unlikely to accept proposals for an F&F order if you have failed to make payments over a considerable period. This means that such arrangements may be more likely to be honoured if you have made token gestures or payments over a long period of time, or if you have an otherwise good history of payments with one or more creditors you may owe money to. It is also worth bearing in mind that your circumstances and ability to pay may well affect the amount that your creditor(s) will be willing to accept in the form of an F&F agreement. You may not necessarily get away with clearing just half of your debt unless your circumstances and history with the company are particularly glowing. These are no reasons not to consider approaching debt support and advice on such arrangements, however – as we will always look at the feasibility of a full and final settlement letter with you during our consultations.

Do bear in mind that a lump sum – as discussed – will often be needed to secure the confidence of the creditor(s) you wish to contact. This means that you must effectively have the money available, in full, that you are willing to pay as soon as the creditor(s) in question have passed judgement. As debt advisors, we will ensure that you are fully prepared to make such proposals, and whether or not doing so is comfortable for your current situation. These types of proposal are less about ‘seeing what you can get away with’, and are more about approaching your lenders to offer the money that you do have available to cease action and to erase the debt.

It is worth bearing in mind that these types of arrangement may be listed on file as ‘partial repayments’ should you require debt advice in future.

What’s the Best Way to Approach Creditors with an F&F Arrangement?

You may only want to make arrangements with one particular creditor if you owe a considerable amount to them – and this is perfectly understandable. However, where possible, we will advise that you make such arrangements with any and all creditors that you may be owing money to should several of them be in pursuit of funds. This will mean that you need to appeal to each creditor with the same offer – and state that you are willing to clear a certain amount with them in return for no further action. The problems that may arise here may come from some lenders being willing to oblige, and others less so – meaning that you may need to open negotiations further with some lenders on a one-to-one basis. When it comes to a full and final settlement how much to offer can be a tricky question, our team can give advice based on your own situation.

If you have a lump sum of money available, and are willing to clear a significant (i.e. the majority) of money owed to your creditors, a full and final settlement offer is an ideal option for you to consider. Even if you are already registered on an IVA or a debt management plan otherwise, you may still be able to write such proposals – and as debt management specialists, we will always be in a position to do the legwork for you, as well as assist you during what may be an extremely stressful time. Partial settlements, however, offer just a tiny extent to our overall expertise. There are other routes you may wish to take, and some may even be more beneficial to you long term.

How Does an F&F Settlement Affect My Credit Score?

As with most forms of debt settlement, this type of arrangement will impact upon your ability to borrow in the short term. This means that, as mentioned, a ‘partially settled’ flag will appear on your credit file – and this does mean that it may not leave your account for up to six years. Therefore, it must be considered with absolute certainty.

Other Forms of Debt Relief

You don’t have to opt for a full and final settlement letter unless it applies to your circumstances, and unless you are able to fund the majority of your bills up front with a lump sum, it may not be available to you right away. Therefore, it is always worth bearing in mind other avenues to take – and we are always happy to discuss the following, for example, with all our customers.

We have mentioned IVAs a couple of times already, and this is because it is one of the most popular forms of debt relief. It’s often one of the first routes we propose. Through this method, you’ll submit monthly payments to a practitioner who will then contact and hold off creditors on your behalf.

You can get Trust Deed Help here if you are living in Scotland and feel that this method would be right for you. It's quite similar to an IVA, and our experts can explain the full details of how it works.

We can give Advice on DMPs, also known as Debt Management Plans. These arrangements can be a little more straightforward and can even help you to understand how to manage debt on your own terms. This is, once again, one of the main routes we advise upon first contacting us, due to its simplicity and broad scope for many customers.

A similar method for those in Scotland would be a DAS and you can find more about the Debt Arrangement Scheme here. This is like the DMP and we would be happy to provide more details if you get in touch with us.

We can also provide Debt Consolidation Help if this is the route you would like to take. Many people with financial worries prefer to consolidate their payments into one affordable amount without the need to pay back

The process of bankruptcy is available for people who are unable to pay back the debts they owe. Declaring Yourself Bankrupt should always be the last option you consider, and, as such, we will never propose this or sequestration outright until other avenues are explored. This form of debt relief may wipe the slate clean, but you will effectively start at the beginning again – with a mark on your credit file, too. Don’t ever consider this form of debt arrangement until we have explored every other possible option with you.

For residents of Scotland there is the Process of Sequestration which is very similar to bankruptcy. Again this should only be considered as a final option and we would advise speaking to an expert about how this works.

More Debt Advice

Handling debt of any size can be stressful, and we understand that the situations clients approach us with are sensitive and require the utmost in empathy and expertise. We’re proud to be able to balance both in equal measure. Our staff are on hand to provide expert advice and even a full and final settlement letter template to help you. If you’re concerned about rising debts with creditors and need a helping hand, call us today on 0808 223 4188 or email us further.