Who it's for
- People offering a lump sum to settle a debt they cannot repay in full
- Creditors willing to accept a reduced amount to close an account
- Anyone who needs proof that a debt was settled
What's included
- About this pack — why settlements must be in writing, and credit reference records
- Template A — Settlement offer (debtor to creditor)
- Template B — Settlement acceptance (creditor to debtor), conditional on payment by a deadline
- Template C — Settlement receipt confirming the debt is fully settled
Save with a bundle: get this plus 9 more documents in the Debt and Consumer Bundle for £39.99.
See what's in the bundle →Key points covered
- Do not pay a reduced amount until the creditor accepts in writing
- The acceptance states the settlement sum, the deadline and that nothing more will be pursued
- Ask for the account to be recorded as 'satisfied' with credit reference agencies
- If payment is late, the acceptance lapses and the full balance remains
- Keep the receipt permanently
DocPilot templates are drafted from current legislation and official guidance (GOV.UK, legislation.gov.uk and the relevant regulators), checked against those sources and fully re-reviewed every six months. They are not legal advice. How we make our documents →
Read the guide
Related documents
Debt Repayment Agreement£9.99 · See what's included →Payment Agreement Template£9.99 · See what's included →Debt Demand Letter Pack£14.99 · See what's included →
Questions
Is a verbal settlement binding?
Don't rely on one. Get the creditor's acceptance in writing before you pay a reduced amount.
What should the acceptance say?
The agreed sum, the deadline, that no further amount will be sought or legal action taken, and how the account will be reported.
Can the creditor chase the rest later?
Not if a written full and final settlement was agreed and paid on its terms. Keep all the letters.
Is it in the Debt and Consumer Bundle?
Yes. The Debt Settlement Letter Pack is one of the 10 documents in the bundle.
Debt Settlement Letter Pack
£12.99 · Word + PDF · instant download
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