If you have negotiated a settlement with a creditor, you can use this template to get the terms of the agreement in writing. You can customize this template to meet the needs of both parties. If you want to make sure your agreement is legally binding, feel free to have it drafted by a lawyer or review your copy. You may also have other useful legal advice regarding your debt settlement agreement. Debt regulation can help you find debt relief and get your personal finances in order, so be sure to follow the guidelines outlined here. The final requirement of this Agreement is to bind both Parties to its terms. This can only be done by the dated signatures of both parties. If you have an agreement with a creditor to settle an outstanding debt, you must create a debt settlement agreement. It is a written agreement that determines who owes the debt (you), who is the lender, the amount of debt, the total amount of debt that will be cancelled and the terms of repayment.

If you want to make sure your contract is legally binding, you can hire a lawyer to help you. In this article, we will look at the elements that should be included in a debt settlement agreement. Next, we describe a template that you can customize and use with your creditors. A debt settlement agreement is used when a debtor is unable to repay the borrowed money in full. Instead of wasting time and money suing a debtor, you can make an agreement on how much a debtor can pay you. You use this sample billing letter to set the amount originally due and the new settlement amount to be paid. Other conditions include the date on which the payment is made and how the debtor will make the payment. If the debtor does not pay on time, the full amount of the debt becomes due.

The optional sections of this debt settlement agreement contain confidentiality and liability clauses. Other names for this document: Debt Settlement Agreement Form, Debt Negotiation Settlement, Credit Settlement Words that indicate that the account will be fully completed when the settlement amount is paid; Several pieces of information are needed to balance the wording of this Agreement. As a first step, we will bring together the parties who intend to conclude this contract. First, we identify the creditor. That is, the party that holds the debt. Note the legal name of the creditor in the first space of the first paragraph. Then document the creditor`s address with the second empty line. Finally, the third and fourth vacancies require the city and state associated with the creditor`s civic address. Then we identify the debtor. This is the party who is required to pay the debt owed to the creditor.

We need to document the same information that is reported about the creditor in the rest of this paragraph. Find the fifth space in this paragraph and document the debtor`s full name on it. Continue the accounts receivable report with their address, city and country of residence in sixth, seventh and eighth places. Several other areas also require information, starting with “I. Effective Date”. This is the date on which the terms of this Agreement become active or effective. Note the name of the month, the double-digit day, and the year of the first calendar day this contract becomes active. Then, in “II. Current debts”, we need to document the entire current debt that the debtor is required to pay to the creditor. Use the blank line after the dollar sign in this statement to record this amount of money. The third point, “III.

Settlement debt”, requires the adjusted amount of debt established for the purposes of this document, which is made available on the white line. This is the amount of money that the debtor has agreed to pay in the manner set out in this document in exchange for debt relief from the creditor. Enter this amount in the blank line after the dollar sign in this section. The section entitled “IV. The payment was formulated in such a way as to consolidate the manner in which the settlement amount is to be paid to the debtor. A number of checkboxes have been provided so that this can be done effectively. Select the Check, Bank Transfer, Certified Check, or Cash check box to specify how the debtor must pay the creditor. If none of them define how this settlement amount is to be paid, check the “Other” box and indicate the payment instructions that the creditor expects from the debtor when submitting the required payment. The following sentence on this point is intended to consolidate the date on which the creditor is to receive the amount of the debtor`s composition.

Look for the blank line for the words “. Settlement debt amount By” then enter the name of the month and the double-digit calendar day on which the creditor is to receive this payment. .