As the previous restrictions preventing any creditor from presenting a winding up petition to the court expired on 30 September 2021, new legislation has now been put in place, in a further effort to reduce the number of companies being wound up by the...
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.