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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
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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.

What about settling other legal disputes?

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.

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 draft debt settlement letter makes provision for this. It also provides a specified amount of time within which the creditor can accept the offer of settlement.

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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 debt settlement letter by clicking the ‘preview’ button. Once bought, 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).

The debtor can then send the debt settlement letter to the creditor who is pursuing them for payment. If you are experiencing other credit problems, then have a look at the Citizens Advice website about what to do.

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Other debt recovery drafts available

If you are a business owner or the creditor, then, as well as the debt settlement letter, you may be interested in our other debt recovery letter templates for managing good credit control. They are:

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