IVA Full and Final Settlement DMP Full and Final Settlement   PROS Legally binding for all creditors Write off up to 75% Smaller creditors cannot refuse settlement   CONS Higher fees (approx 4k) Takes approx 5 months from start of negotiations Complicated procedure that needs a professional Insolvency Practitioner   PROS Lower fees (approx 1.5k) Write off up to 50% of debt Quicker time frame (approx 3 months from start of negotiations)   CONS Some creditors may opt out of settlement May have to wait until creditors sell debts on to collection agencies before negotiations can start Find out:   How much debt could be written off?   Which debt solution is most appropriate?   What will my new monthly payment be?   How long until debt free?     Your total debt: £ (please enter a number only)     Number of creditors: (companies you owe money to)   (please enter a number only)     Monthly income: £ (please enter a number only)     Monthly expenses: (not including debt repayments) £ (please enter a number only)     Do you own your own home? Yes No     DISCLAIMER: The debt solutions calculator is approximate and should only be used as a guide.

DMP Full and Final Settlement Case Studies IVA Full and Final Settlement Case Studies Donald, 41 with £24k Debt Situation Before Full and Final Settlement: £24k debt and repayments of £650 a month with debt increasing. Full and Final Settlement Debt reduced from £24000 to £12000 (50% written off) Settlement Time frame: 8 months Settlement Fees: 10% of the amount written off (10% of 12k is £1200) What Happened Donald started a debt management plan with us so that his debts did not get any worse whilst we negotiated with the creditors. We worked with Donald to see how he could raise funds. He considered selling assets, borrowing of friends and family and remortgaging. In the end he decided to ask his sister to borrow the money on his behalf. He agreed to take over the loan once the settlement was complete. We waited 6 months until the creditors had sold their debts onto collection agencies (typically for 10p in the pound). We then offered settlement of 50p in the pound - which the collection agencies accepted. Situation After Settlement Donald agreed to informally repay the loan that his sister had taken out (for £13k). He is repaying the loan at the rate of £300 a month and it will be repaid within 5 years. His credit rating is already starting to get better. Susan, 27 with £50k of Debt Situation Before Full and Final Settlement: £50k debt and repayments of £1200 a month with debt increasing. Full and Final Settlement Debt reduced from £50000 to £12500 (75% written off) Settlement Time frame: 5 months Settlement Fees: £4500 What Happened Susan started a debt management plan with us so that her debts did not get any worse whilst we negotiated with the creditors. We worked with Susan to see how she could raise funds. She considered selling assets, borrowing of friends and family and remortgaging. In the end her father decided to pay the debts off with a gift. We formally proposed the offer at a creditors meeting. The key creditors accepted (which bound in the other creditors). The debt was written off.