When it’s time to call it quits?
If you’ve kept your creditor(s) waiting a while for their funds, or your small monthly payments are not enough, an FSO could be the way to go. It simply means that you must pay most of the debt now. You may at this stage consider offering your creditors a ‘lump sum’ – if you have enough for one.
You may have just come into a windfall and decide to use this money as your lump sum. And if your creditors(s) want this matter dealt with quickly, they may agree to settle for a lump sum, where the outstanding debt is legally written off. End of story.