Full & Final Offer Rejected, What Do I Do?

So your full and final settlement offer has been rejected, so what do you do now? The thing you have to remember about a full and final settlement, is that often it is a very long haul. You obviously want to settle at the lowest value possible, but the creditor will often reject your offer in an effort to get more money. So every time your offer is rejected, write back to the creditor with your full and final offer, explaining why they should accept it.

Why Should a Full and Final Offer of Settlement Be Accepted

In order for a full and final offer to be accepted, you need to paint a bleak picture of your financial situation. In order to do this, it is always advisable to produce an income and expenditure. This way you will be able to show to the creditors how bad your financial situation actually is.

Medical Documents to help Full and Final Settlement

If there are medical reasons that have contributed to your poor financial situation, then these could also be included when you make a full and final settlement offer.

How Long Does a Full and Final Settlement Take

This often depends on what percentage of the actual debt you are willing to offer. The higher the figure, then usually the quicker it is to agree a full and final settlement. However, it’s safer example you are only offering £2500 for a debt of £10,000, then it could be a fairly long drawn-out process. I have known some negotiations to go on for about four years. It can also depend upon how old the debt is. The older a debt is, and the more that it has been sold on, then the better your chances are getting a very low and quickish full and final settlement.

Income & Expenditure and Full & Final Settlement

Remember when completing your income and expenditure, if you show lavish holiday expenses or spending money on cigarettes. Then a creditor may reject your settlement offer because they would rather have monthly payments! In the Income and Expenditure F&F you will be able to include the lump sum you have available for the creditors. Once you have entered the lump and how much you owe each creditor, the spreadsheet will calculate how much (maximum) you can offer each creditor on a pro-rata split.

Holidays, Christmas and Birthday Presents etc should be ZERO, as creditors may want that too!

Property and Full & Final Settlement

Remember, if you have a property that has substantial equity in it, then a creditor may also reject your offer. Full & final settlements often work best if there are no properties, or if there is a property, there is no equity in that property

How Long Does a Full and Final Settlement Take?

This really depends on what your current situation is and what percentage of the debt you are able to settle. If you are able to say make a one off payment of about 80-90% of the debt, then a creditor may well accept straight after you have made on offer. If however, your offer is much lower, then you could have a fight on your hands – but it is achievable!!!

Full and Final Offer Has Been Rejected by Creditor What Do I Do?

Quite often if you offer a full and final settlement to a creditor (especially if the offer is very low) this offer will be rejected by the creditor. Obviously, the creditor wants to get as much money from you as possible, in turn you may only be able to offer a small amount to the creditor. Do not give up! each time your offer is rejected, immediately send them the full and final offer again, explaining why you can not afford to pay more.

Do Not be Disheartened

Often achieving full and final settlements can be rather frustrating, as they can take time and there are plenty of rejections. However, if you stick to your guns, you will achieve a good settlement. Here are some full and final settlement successes that have been achieved.

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