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How do you make a settlement offer? Firstly you need to work out how much to offer your creditors and then send your offer to them in writing. Always ask your creditors to confirm they accept your offer in writing before you send them any money.

Your debt settlement proposal letter must be formal and clearly state your intentions, as well as what you expect from your creditors. You should also include all the key information your creditor will need to locate your account on their system, which includes: Your full name used on the account. Your full address.

Full and final settlement means that you ask your creditors to let you pay a lump sum instead of the full balance you owe on the debt. In return for having a lump-sum payment, the creditor agrees to write off the rest of the debt.

Calculation of amounts payable:- Example: If an employee's Basic salary is Rs. 10,000 and has a balance of 20 unutilized earned leaves, then earned leaves amount payable will be calculated as (20 x 10,000)/26 = Rs. 7,692, considering there are 26 working days in a month, excluding the holidays.

What percentage should I offer a full and final settlement? It depends on what you can afford, but you should offer equal amounts to each creditor as a full and final settlement. For example, if the lump sum you have is 75% of your total debt, you should offer each creditor 75% of the amount you owe them.

Full settlement means the upfront payment terms where the contract amount is paid in full as a single transaction by the specified date.