Debt Settlement Letter
Our Debt Settlement Letter template:
- Proposes ‘full and final’ settlement
- Drafted by a UK expert for reliability
- Once accepted, it is legally binding
- Cost-effective legal piece of mind
How Does It Work?
- 1. Download
- 2. Edit
- 3. Print
- 4. Sign
You can use this template for a full and final settlement letter in the case of a disputed debt where, as the debtor, you dispute the full amount of the debt claimed, but will make an offer. If the creditor accepts the offer, then the debt is considered to be settled in full.
If you are settling an alternative dispute, rather than a debt, then we recommend using these alternatives:
- For simple legal disputes, this settlement letter for legal disputes; or
- For more complex legal disagreements we recommend using a full settlement agreement template.
With full and final settlements of any type, it is critical that you get acceptance in writing, so you can prove there was an agreement and what its terms were in case something goes wrong later.
This letter template makes provision for this. It also provides a specified amount of time within which the creditor can accept the offer of settlement.
Using our Debt Settlement Letter template
By sending this letter, you are making a formal offer to settle the debt by paying the amount you propose. For this reason, you must get acceptance in writing in case you need to prove it in the future.
Using our letter template is simple. You can view a sample of the settlement letter by clicking the ‘preview’ button. Once purchased, download it in Microsoft Word format, then you can easily and quickly edit the template to suit your needs. Once finished, you can then print it on your business’s headed notepaper (if applicable).
It can then be sent to the creditor who is pursuing you for payment. If you are experiencing other credit problems, then have a look at the Citizens Advice website about what to do.
If you are a business owner or the creditor, then you may be interested in our other debt recovery letter templates for managing good credit control.