Short Settlement

If a lump sum equating to around 50% of the debt is available, it may be possible for us to negotiate a settlement with each of your creditors and write off the entire balance outstanding.

Strengths: Not necessary to disclose all assets and finances as in an IVA; some debts will be settled for a fraction of the original debt; involves no long term arrangements as a one off payment.

Weaknesses: A lump sum is required, the solution will affect your credit rating and there is no guarantee of success. It can take some time to negotiate settlement on some debts depending on size of debt, money available and creditor procedures.

Real life story

Short Settlement

Mr D had a single £50,000 debt with a large well known lender but had recently been unwell and unable to work, relying on his savings to support himself. Before debtDr became involved Mr D had tried negotiating with his the lender who were aware that he had a small mortgage and over £100,000 worth of equity in his property. On receiving notice of a court hearing to drop a charging order for the full amount plus costs from the lender, Mr D contacted debtDr who were able to stop the hearing and negotiate a 50% saving for Mr D.

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