Monday, February 23, 2009

Full and final settlement is the process of asking creditors to accept a lump sum

Full and final settlement is the process of asking creditors to accept a lump sum
which is less than the full balance owed on the debt, and in return for having a
lump sum payment, the creditors agree to write off the rest of the debts.
They also agree in writing to change your credit reference file details to show that
the balance is “satisfied”.
The lump sum payment is often determined by a combination of disposable
income and the level of equity you have in your property. Or perhaps a family.
member is offering to settle the debt for you...
Full and Final is not guaranteed. The creditor may refuse an offer.
If they do refuse, there are a number of options available for you to proceed..

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