No – they don’t, but there are many reasons why a creditor may consider a lump sum in settlement of a debt. For example, if you’ve fallen behind with your payments, or if you’re making reduced payments and it will take a long time to pay off the debt, the creditors may prefer to have a lump sum now rather than relying on a low return for a very long time.
If your creditors are not prepared to accept a reduced settlement, we can talk you through your options. If you have the money available after settling other debts you may want to pay the debt in full or, alternatively, you may wish to continue paying a monthly instalment directly to the firm. If you can’t get the reduction you need to settle all of your debts and you won’t be able to meet the repayments moving forwards, you may be able to consider a single payment IVA.