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Full and Final Settlement Offers and Debt Write-Offs
If you have a lump sum, such as from family or savings, you can offer a creditor part of what you owe in full and final settlement of the debt. If they accept, the rest is written off. Creditors may also write off debts in exceptional circumstances, such as when you have no spare income, savings or assets and this is unlikely to change, for example because of severe illness.
At A Glance
Your Rights
What the rules say, with a link to the official source for each.
How It Works
Settlement
Ask creditors to accept part payment and write off the rest. Some may accept monthly payments for an agreed time, then write off the balance. source
Write-Offs
Possible only in exceptional circumstances, such as having no available income, savings or assets with no likely improvement, for example severe illness. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- In writingGet acceptance firstBefore you pay anything
Steps to Take
Step 1 of 4
Work out the lump sum you can offer to each creditor fairly.
Step 2 of 4
Write making your offer "in full and final settlement".
Step 3 of 4
Wait for written acceptance before paying.
Step 4 of 4
Keep the letter and check your credit file shows it settled.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
Free Debt Advice (MoneyHelper)
Find free, confidential debt advice near you or online.
Citizens Advice or National Debtline
Free debt advice. They can also ask bailiffs for more time on your behalf.
Good to Know
Small things that make your complaint stronger.
These rules are for England and Wales. Scotland and Northern Ireland have different debt and enforcement rules.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 15 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.