Full and Final Settlement

A full and final settlement is where a borrower makes an offer of a one-off partial payment to a creditor in exchange of the full settlement of a debt.


Full and final offers are suitable when you are able to make a lump sum payment.

Raising Money to Make a Full and Final Payment Offer

Typical sources of capital to make a full and final offer include:

  • Redundancy payment
  • Sale of assets
  • Remortgage
  • Gift from family or friends
  • Inheritance or other windfalls

You should not take out a conventional unsecured loan to raise the money.

Benefits of a full and final debt settlement

  • Part of your debt written off. On some occasions we have saved clients up to 50% of their total debt.
  • It offers you an immediate chance of a fresh start.
  • Creditors should inform Credit Reference Agencies that the balance has been paid off in full.
  • Allows you to remortgage where there isn't enough equity available to clear your debts in full.

How Harrington Brooks can help

In most cases, settlements are offered to creditors for our existing financial management or IVA clients to bring those arrangements to an early conclusion. However, we also arrange settlement offers from new enquiries, whether the client is on a financial management plan elsewhere or not.

Process of a Full and Final Settlement

We arrange full and final settlements every day and have a dedicated team who are experts at negotiating with creditors in such matters.

We work out your total debt and make a pro-rata offer to each creditor depending on the percentage of the total debt owed to them. It has to be this way as we would need to explain to each creditor about all your debts and so that all creditors are treated equally. We would also request that default notices are not recorded against you.