What is full and final settlement? A "full and final settlement" is when we act on behalf of the client and ask the creditors if they will accept a lump sum payment which is less than the full balance that is owing on the debt. In return for having a lump sum payment the creditor agrees to write off the rest of the debt. Generally speaking this is brought about by the client having an amount of money made available for a  number of reasons. For example, the client may be selling an asset such as a property, motor car or investment or they have some savings that can be used.  On same occasions, a relative or friend may put forward a lump sum to help pay off the creditors. It’s important that the client’s circumstances overall may be very unlikely to change for the better in the future. The amount of full and final settlement that the creditor will accept depends on a number of factors including how long the agreement has been running and how much in arrears.  Generally speaking, it is reasonable to assume that creditors will not accept less than 40% of the amount owing at the very best. If the client requires us to negotiate on their behalf, the initial fee payable on instruction is £295. The overall fee payable by the client is based on each individual case but range between 10% and 15% of the amount saved from the balance owing to the creditors and the amount agreed.