Stephensons Solicitors LLP Banner Image
Stephensons Trustpilot stars
Based on count 1312
View all reviews

Full and final settlement

If your business is pursuing unpaid debt from another business or an individual, they may offer a partial payment as a lump sum and call it ‘in full and final settlement’. If your business accepts the payment on these terms, you may be relinquishing your right to recover the remainder of the debt they owe you.

A full and final settlement offer will always be below the full amount owed, so it’s important that your business understands the consequences of accepting this offer if you receive a full and final settlement letter from the debtor.

Sometimes, businesses believe that they are receiving a partial repayment of debt and don’t always see the full and final settlement wording on the letter, which can mean they unwittingly agree to write off the rest of the debt by accepting this offer. With the help of expert debt recovery services, you can be protected from issues like this, and advised on the circumstances under which accepting a full and final settlement agreement may be the most prudent action. Call our team on 0161 696 6170.

loading staff

Should a business ever agree to full and final settlement offers from debtors?

There may be some circumstances in which your business is owed money and the debtor is highly unlikely to able to repay the full amount at any stage. Depending on the specific details involved in this particular situation, the best possible outcome in terms of recovered funds may be to accept the offer, although this may also depend on the full and final settlement offer percentage that the debtor has put forward.

It’s recommended that you consult an experienced debt recovery solicitor, who will be able to offer tailored expert advice for your business, based on what is in your best interests. The cost consequences of agreeing to accept a full and final settlement payment should be balanced with a number of other factors and the team at Stephensons are ideally placed to support your business in this, as well as any other aspect of debt recovery. Get in touch by calling us on 0161 696 6170.

4.6out of 10
4.6 score on Trustpilot Based on count 1312

We're Great

It is our business to deliver legal services that work for our clients, and you can trust our specialists to take care of things on your behalf.

Our Trustpilot reviews

Commercial forfeiture restrictions extended

On 16 June 2021, the government announced that the restrictions on commercial forfeiture for unpaid rent arrears has been extended until 25 March 2022. The restrictions, which have been in place since 26 March 2020, were due to be lifted on 30 June 2021....

Read more

Twitter commercial

@CommercialLLP

Financial infidelity - don't let money secrets ruin your relationship

National survey reveals how truthful UK adults are about money matters with their partner. Almost a third (32%) of UK adults had little to no trust* in their most recent partner when it comes to financial matters. More than a third (38%) of UK...

Read more

Debt recovery reorder

  • Jonathan Chadwick
  • Louise Hebborn
  • Alistair Gregory
  • Kerrie Ainscough
  • Declan Gilroy
  • Thomas Perrin
  • Matthew Smith